California Supreme Court Allows Bad Faith Claim Against Excess Insurers Absent Underlying ExhaustionFox Paine & Co., LLC v. Twin City Fire Ins. Co., 593 P.3d 832 (Cal. 2026).
Insurance Bad Faith Report, October 2026
Latest from Insurance Coverage Notes and Developments
California Federal Court Holds Insured v. Insured Exclusion Bars Coverage for Shareholder Derivative Action Brought by Former Director
A D&O policy’s insured v. insured exclusion applies to a derivative action where the shareholder plaintiff was briefly a director of the insured company, according to the United States District Court for the Northern District of California’s ruling in Gross
Delaware Superior Court Holds Bump-Up Clause Bars Coverage for Merger Settlement
A D&O policy’s bump-up clause bars coverage for a shareholder class settlement that effectively increased merger consideration, according to the Delaware Superior Court’s ruling in MSG Networks Inc. v. Federal Insurance Company, et al., C.A. No. N23C-01-103 PRW CCLD, 2026
Sixth Circuit Holds Product Recall Was a Single “Occurrence” Under CGL Policy, Limiting Policyholder Retention
On July 1, 2024, the Sixth Circuit released its opinion in J.M. Smucker Co. v. ACE American Ins. Co., No. 25-3799, ___ F.4th ___, holding that thousands of claims due to exposure to 225 lots of salmonella-contaminated peanut butter produced
Insurance Bad Faith Report, July 2026
South Carolina Court Of Appeals Rules Endorsement Covering Theft Did Not Cover Loss Of Money Unwittingly Wired To HackerSpeights v. Chubb Ltd., No. 2026-UP-194, 2026 S.C. App. Unpub. LEXIS 205 (S.C. Ct. App. Apr. 29, 2026).
An insured attorney filed
New Jersey Supreme Court Holds Capacity Exclusion Applicable to Dual Capacity Claims
A D&O policy’s capacity exclusion bars coverage for claims alleging that an insured director or officer acted in a dual capacity for insured and uninsured entities, according to the Supreme Court of New Jersey’s ruling in Mist Pharmaceuticals, LLC v.
Now Live: The April 2026 Insurance Bad Faith Report
Our latest Bad Faith Report is now available, featuring concise summaries of the most recent bad faith decisions issued nationwide.
New York Federal Court Holds Run-Off Policy’s Subsequent Acts Exclusion Inapplicable Because Conduct Alleged After Cut-Off Date Was Lawful and Not a “Wrongful Act”
The United States District Court for the Southern District of New York has denied an insurer’s motion to dismiss coverage litigation, holding under New York law that a run-off D&O policy’s subsequent acts exclusion does not bar coverage for an
Eleventh Circuit: Misappropriation Exclusion Doesn’t Bar Duty to Defend Under Georgia Law
The Eleventh Circuit has held under Georgia law that a misappropriation exclusion in a lawyer’s professional liability insurance policy did not eliminate the insurer’s duty to defend an underlying lawsuit. See Medmarc Casualty Insurance Co. v. Fellows Labriola LLP, 2025
Second Circuit Affirms Broad Reading of Contract Exclusion in Closely Held Family Corporation Litigation
The Second Circuit recently affirmed a decision by a New York district court that the contract exclusion in a D&O insurance policy applied to all of the causes of action in an underlying action, including a cause of action for