D&O Claims Don't Trigger Policy Exclusion, 9th Circ. Told

By Josh Liberatore (May 17, 2022, 3:40 PM EDT) -- A laid-off worker at a now-bankrupt solar power company asked the Ninth Circuit to revive an action seeking coverage from the company's insurers, saying an employment exclusion does not apply to breach of fiduciary duty and tort claims asserted against former directors and officers.

Andrew Adelman, a former Sungevity employee acting as the assignee for the company's former directors and officers, said in a Friday brief that U.S. Specialty Insurance Co. and Great American Insurance Co. cannot rely on an employment exclusion in their D&O policies to avoid covering a $4.9 million settlement.

The exclusion in question states that the insurers...

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