In January, colleagues Joseph D. Jean, Alexander D. Hardiman, Benjamin D. Tievsky, Janine Stanisz and Stephen S. Asay examined New York’s Comprehensive Insurance Disclosure Act, which amended New York Civil Practice Law & Rules (CPLR) § 3101(f) to require defendants in civil cases to disclose voluminous and potentially sensitive insurance materials. When signing the…
Policyholder Pulse
War Exclusion Does Not Bar Recovery for Losses from a Nation-State Cyber Attack on Pharma Giant and the Effects on Insurance Policies from Increased Globalized Threats of Ransomware
Over the past few years, ransomware attacks have increased in frequency and demand size. And, increasingly, those attacks have targeted businesses and critical infrastructure organizations from across the globe. This trend is likely to continue. The Cybersecurity & Infrastructure Security Agency noted that cybersecurity authorities in the United States, Australia…
EPA Announces Increased Efforts to Require Cleanup of Coal Ash – Insurance Should Be a Component of Companies’ Response
Early in 2021, we wrote about potential insurance implications that could arise from the then-new Biden Administration’s expected regulatory priorities. Among other things, we noted that heightened scrutiny on coal ash was expected. On January 11, 2022, the U.S. Environmental Protection Agency (EPA) confirmed that prediction, issuing a press release…
New York’s Comprehensive Insurance Disclosure Act Introduces Sweeping New Insurance Disclosure Requirements for State Court Litigants
Defendants in New York state court are now subject to some of the most extensive liability insurance disclosure requirements in the nation. On December 31, 2021, Governor Hochul signed into law, effective immediately, the Comprehensive Insurance Disclosure Act, amending New York Civil Practice Law & Rules (CPLR) § 3101(f) to…
SXSW Seeks Resolution of Federal’s Duty to Defend Underlying Ticketholder Class Action Arising from COVID-19 Cancellation
The widespread denial of coverage under first-party property insurance policies for business interruption losses resulting from the COVID-19 pandemic has been extensively reported, but so far less attention has been paid to related third-party claims and attendant coverage issues arising under liability insurance policies. When ticketed attendees sued the organizer…
Insurability Update: New York High Court Affirms Coverage for Settlement Amount Labeled “Disgorgement”
Last month, we discussed a decision by the Northern District of Illinois finding an amount labeled “restitution” in a settlement between a pharmaceutical company and the DOJ was insurable loss under a D&O policy. Shortly after that post, the New York Court of Appeals reached a similar conclusion, continuing the…
An Update on Recent PFAS Regulation and Enforcement and the Resulting Insurance Implications
In August, we provided an overview of the recent increase in regulatory and private litigation activity around per- and polyfluoroalkyl substances (PFAS), colloquially known as “forever chemicals,” and potential insurance coverage for PFAS liability. There have been important developments on the PFAS front in the past few months. Companies with…
The Benefits of Mediating Complex Insurance Claims in a Post-Pandemic World
In my December 18, 2017, blog post, I wrote about “choosing the right path” to settle complex insurance claims and emphasized the benefits of private structured negotiation, a type of negotiation undertaken without the assistance of mediators. At that time, I identified mediation as “a good potential next step.” Since…
In Another Blow to the “Uninsurability” Defense, Court Holds that Settlement Labeled “Restitution” Is Insurable
In previous posts, we have emphasized the continued judicial trend rejecting insurer arguments that losses purportedly sounding in restitution or disgorgement are “uninsurable” under D&O policies. Despite that trend, insurers continue to invoke “uninsurability” under state law or vague notions of public policy, even where such a doctrine has not…
Biometric Privacy, BIPA and the Battle for EPLI Policy Coverage
Do employees have a privacy right in the shape of their faces, the color of their eyes, or the texture of their fingertips? In many states, the law now says yes—leading employers to ask: Are resulting biometric privacy claims covered under their existing policies, or is insurance otherwise available? Employers…