Insurance Law Watch – The Policyholder’s Guide

New Jersey High Court Highlights D&O Insurance Traps for Complex Business Structures

Jul 01 2026

Businesses and their leaders expect directors and officers (D&O) insurance to provide broad coverage for acts undertaken in an individual’s corporate capacity. However, a recent New Jersey Supreme Court ruling highlights serious coverage traps that may exist for individuals wearing multiple corporate hats. Policyholders should be aware that insurers may attempt to avoid coverage obligations by arguing that mixing insured and uninsured roles can result in a complete loss of coverage.

Protecting Against the Next Wave of AI Product Liability Exposure

Jun 11 2026

By: Michael S. Nelson and Nicholas N. Chan

With the growing shift towards artificial intelligence product liability litigation, policyholders should assess their exposure and coverage risks under their existing policies. As previously discussed, plaintiffs are testing whether consumer-facing AI applications should be treated not as traditional services, but as products that would be subject to claims such as design defect, inadequate warnings, and foreseeable misuse. As courts determine these threshold questions for liability purposes, policyholders would benefit from exploring AI-specific coverage to protect against these risks and should be aware of emerging AI-specific exclusions in the marketplace.

NJ Court Rejects Coverage-Minimizing Application of Non-Cumulation Clauses in Construction Defect Cases

Jun 02 2026

By: Frederic J. Giordano, Patrick J. Perrone, and Alexandra DiFusco

A recent New Jersey trial court decision confirmed expansive coverage for commercial general liability policyholders entrenched in construction defect litigation involving continuous and progressive property damage.

Delaware Delivers Another “Bump-Up Exclusion” Win to D&O Policyholders

May 27 2026

By: Lucas J. Tanglen and Alexandra DiFusco-Cox

Earlier this year, the Delaware Supreme Court delivered the latest win for policyholders in a string of battles regarding so-called “Bump-Up Exclusions” in directors and officers (D&O) liability insurance policies. The ruling carries lessons in this fiercely contested area.

Pro-Policyholder Trend Continues in TVPRA Coverage Litigation

May 20 2026

By: Donald W. Kiel, Erin D. Fleury, and Alexandra DiFusco-Cox

In a pro-policyholder trend, multiple federal courts have recently resolved several important insurance coverage issues arising from underlying lawsuits alleging sex trafficking.

We Wrote the Book on Coverage. Now We Write the Blog.

May 19 2026

By: Michael S. Nelson and Lucas J. Tanglen

For decades, the Insurance Recovery and Counseling practice group at K&L Gates has helped clients maximize insurance recoveries through creative, policyholder-focused advocacy. Our lawyers have handled some of the most significant coverage disputes of the last several decades—from product liability and environmental claims to emerging issues involving cyber attacks, product recalls, and boardroom risks. While the challenges have evolved, one thing has remained constant: helping policyholders overcome insurers’ reluctance to honor their contractual obligations.