Specialty Lines

Expert Analysis

• How D&O Insurers Can Limit Bankruptcy Exclusion Risks

  

  Amid challenging economic conditions, directors and officers underwriters can't always rely on insolvency exclusions to protect against insured's bankruptcy claims, but there are ways to limit risk exposure, like by adding creditor exclusions or sublimiting coverage, say Kristine Christ at Crum & Forster, and Scott Schechter and Joshua DiLena at Kaufman Borgeest.

• Questions Remain On Computer Fraud Coverage For Phishing

  

  There are questions regarding the applicability of computer fraud coverage to phishing scheme losses in the wake of the Ninth Circuit's decision in Ernst & Haas v. Hiscox earlier this year, with a backdrop of differing case results and evolving fact patterns over the past few years, say Robert Callahan and Melissa D’Alelio at Robins Kaplan.

• Insurers Must Be Vigilant About Cannabis Lounge Risks

  

  Because cannabis lounges face a number of unique risks, such as overserving cannabis to patrons, insurers and risk management providers must be able to recognize and properly address the full range of potential liabilities, say Jonathan Isaacson and Adam Nicolazzo at Kaufman Dolowich.

• Insurers Should Beware Risks From Digital Asset Losses

  

  Personal lines insurers should not underestimate the potential severity of future exposure to digital asset loss claims, and should consider protecting themselves with new underwriting practices and policy exclusions, say attorneys at Sidley.

• State Ransomware Payment Laws Raise Insurance Questions

  

  Recent Florida and North Carolina statutory prohibitions on government agencies' ransomware payments will not just affect public entities' response to ransomware incidents, but also require consideration from insurers whose policies may cover ransom payments, say Ted Brown and Mallory Meaney at Wiley.

• Anti-Kickback Circuit Split Holds Implications For Defendants

  

  The Eighth Circuit's recent decision in U.S. v. D.S. Medical represents a significant step toward holding plaintiffs to more exacting burdens of proof in Anti-Kickback Statute False Claims Act suits, and the outcome of the resulting circuit split could decrease estimated damages for defendants, say attorneys at Gibson Dunn.

• 8th Circ. Ruling Raises Bar For Anti-Kickback FCA Claims

  

  The Eighth Circuit's decision in U.S. v. D.S. Medical makes it more difficult for plaintiffs to claim that a violation of the Anti-Kickback Statute supports False Claims Act liability, but an emerging circuit split and uncertainty regarding evidentiary requirements must be considered when developing a defense strategy, say attorneys at Winston & Strawn.

• Insurance Tips For Cos. Offering Reproductive Health Benefits

  

  Post-Dobbs state laws allowing legal action against anyone who facilitates an abortion could lead to claims against employers providing reproductive health benefits, so companies must ensure their insurance policies afford sufficient protection for any novel claims, say Heather Habes and Gretchen Hoff Varner at Covington.

• Texas Tax Talk: Ruling May Erode Pro-Taxpayer Presumption

  

  Following the recent Texas Supreme Court opinion in Hegar v. Health Care Service, the state comptroller may try to limit the utility of a long-standing presumption that ambiguous tax statutes must be construed strictly against the taxing authority and liberally for the taxpayer, say attorneys at Baker Botts.

• Understanding Legal Considerations In Cannabis M&A Deals

  Excerpt from Practical Guidance

  

  Zachary Turke and Peter Park at Sheppard Mullin discuss the unique set of challenges for both buyers and sellers in cannabis industry merger and acquisition deals, given the rapidly changing economic conditions, the ever-changing regulatory landscape and new market entrants.

• Cybersecurity Basics Are Key to Combating Ransomware

  

  Recent prohibitions on ransom payments and other public policy measures vastly underestimate the breadth and complexity of the ransomware problem and will only work if organizations adopt basic cyber defenses, says Kate Margolis at Bradley.

• How M&A Insurers Can Increase Smaller Deal Servicing

  

  As the number of M&A deals in the $50 million to $200 million range continues to grow, lawyers, insurance brokers and clients must address the trend away from covering these smaller transactions by working together to make it easier for carriers to consider submissions and to insure these types of risks, says Hilary Weiss at Liberty Global.

• Lessons From Calif. Liability Claim Recoupment Ruling

  

  A recent California federal court decision in Evanston Insurance v. Winstar Properties illustrates the perils of insurer recoupment and underscores the importance of assessing recoupment rights, if any, throughout the claims process, say Geoffrey Fehling and Veronica Adams at Hunton.