Specialty Lines

Expert Analysis

• The Need For Insurance Options To Protect NFTs

  

  Until insurance companies offer crucial protections to cover the unique risks in the nonfungible token market, NFT owners, buyers, marketplaces, wallet providers and server farms remain exposed to potentially significant hazards, say attorneys at Pillsbury.

• An Insurer's Guide To Policyholder Bankruptcy

  

  Given the increased likelihood of policyholders filing bankruptcy petitions in the wake of the pandemic, insurance professionals must be aware of five basic principles when dealing with an insured in bankruptcy, says Eric Fitzgerald at Goldberg Segalla.

• COVID Rulings May Support Ransomware Insurance Denials

  

  A recent spate of pandemic-related insurance decisions — where federal courts found that a temporary inability to use property doesn't qualify as physical loss or damage for coverage purposes — may be used as favorable precedent by cyber insurers denying ransomware loss claims for temporary inability to access data, say Thomas Caswell and Peter Kelly Golfman at Zelle.

• Why Legacy Insurance May Not Protect Adopters Of Bitcoin

  

  Evidenced by El Salvador's adoption of the Bitcoin standard this week, there is an emerging need for insurance products to cover the risk of owning and holding the digital asset, as it may not fall into the protected categories in legacy insurance products, say attorneys at Mound Cotton.

• Ill. BIPA Ruling Marks Critical Win For Silent Cyber Coverage

  

  The Illinois Supreme Court's recent decision in West Bend Mutual v. Krishna Schaumburg Tan, confirming that commercial general liability policies do not have to include specific language to cover claims under the Biometric Information Privacy Act, represents a critical victory for policyholders, but leaves unresolved issues in the battle over BIPA coverage, says Tae Andrews at Miller Friel.

• New Ruling Means Ky. Insurers May Rely On Notice Deadlines

  

  The Kentucky Court of Appeals recently resolved a matter of first impression in Darwin National v. Kentucky State University, deciding that an insurance claim made outside the specified 90-day reporting period was late and thus properly recognizing that the reporting requirement in a claims-made-and-reported policy reflects a bargained-for condition to coverage, say Kristi Nolley and Lindsey Dean at BatesCarey.

• How D&O Coverage Fits Into Diversity Claim Mitigation

  

  As companies face a shift in the directors and officers insurance market following a spate of recent shareholder suits over lack of diversity in corporate leadership, executive teams should review D&O policy coverage while implementing diversity initiatives that will effect meaningful, long-term change, say Natasha Romagnoli and Hannah Ahn at Blank Rome.

• D&O Insurance Implications From Tesla's Stock Drop Suit

  

  A recent shareholder stock drop lawsuit against Tesla showcases the legal perils that can follow companies' social media missteps, and highlights the importance of directors and officers liability insurance in the current age of political polarization, says Tae Andrews at Miller Friel.

• Tips For Managing Cybersecurity And Privacy Risks In M&A

  

  Cybersecurity and privacy issues in M&A transactions should no longer be an afterthought and should be treated on equal footing as other parts of the due diligence process, like tax, real estate and intellectual property, say David Kessler and Anna Rudawski at Norton Rose.

• 6 D&O Provisions To Consider When Buying SPAC Insurance

  

  As directors and officers insurance strives to keep up with the unique risk profiles of special purpose acquisition companies, D&O policy language distinctions can make a critical difference in whether claims against SPACs are covered, says Stephen Raptis at Haynes and Boone.

• Del. Rulings Guide On D&O Insurance For Corporate Fraud

  

  Two recent Delaware decisions chart a helpful path for policyholders seeking directors and officers coverage for incidents involving fraudulent conduct, and also demonstrate the flexibility afforded by choice-of-law clauses, say Brian Scarbrough and Eric Fleddermann at Jenner & Block.

• Boiler And Machinery Insurance Can Boost Cyber Coverage

  

  Companies affected by cybersecurity incidents may be covered by their boiler and machinery insurance, which shares many similarities with modern cyber insurance offerings and may apply despite exclusions specifying certain forms of cyber coverage, say attorneys at Cooley.

• 3 Cybersecurity Questions To Ask Before A Remote Mediation

  

  Lawyers preparing to mediate or arbitrate a case through videoconference should take steps to ensure they and their alternative dispute resolution providers are employing reasonable security precautions to protect digital client data and conform to confidentiality obligations, say F. Keith Brown and Michael Koss at ADR Systems.