HNRK Coverage Corner

A recent decision from the U.S. District Court of Western District of Washington  touches on a number of important insurance coverage issues:  policy reformation, the effect of an insured’s late notice of a claim, and the insurer’s burden to prove applicability of a policy exclusion. In General Casualty Company of Wisconsin v. Reed Hein & Assoc. LLC et al., the court’s consideration of these issues resulted in opposite outcomes for two insurers. While the insured’s CGL carrier (General Casualty) successfully avoided a duty to defend, the D&O insurer (RSUI) was found to have ...

On December 8, 2025, Judge Rennie of the Superior Court of Delaware issued a decision in The Cigna Group v. XL Specialty Ins. Co., C.A. No. N23C-03-009, holding that a civil investigative demand (CID), issued by the U.S. Department of Justice in connection with a False Claims Act investigation, constituted a “Claim” under the insured’s E&O policy, triggering coverage for defense costs.

Responding to a government investigation can be a costly proposition.  And the issue of insurance coverage for the resulting attorneys’ fees and other defense expenses is a perennial issue.  ...

This week at the Coverage Corner, we are looking at a recent Seventh Circuit decision that offers guidance on two issues under Indiana law: (1) an excess insurer’s duty to participate in a pre-suit mediation where the underlying policy limits have not yet been exhausted but “would be” exhausted in the event of a settlement; and (2)  whether a party qualified for coverage as an additional insured based on facts outside the underlying complaint.

Background

The insurance coverage dispute in Atlanta Gas Light Company & Southern Company Gas v. Navigators Insurance Company, Case Nos ...

This week at the Coverage Corner, we take a quick look at a recent decision from the Southern District New York in which the Court, following a bench trial, ruled in favor of a policyholder and used the mutual mistake doctrine to reform the policy to provide coverage.

Background

The facts are relatively straightforward.  The policyholder, Systems 2000 Plumbing Service (“Systems 2000”) sought coverage from its primary (Travelers) and excess (GuideOne National) insurers in connection with claims against Systems 2000 arising from a fire at the Manhattan apartment building where ...

Last month, the Second Circuit held that commercial general liability insurers owed no duty to defend or indemnify a retailer of unfinished firearms in underlying “ghost gun” lawsuits because the lawsuits at issue did not allege injuries arising from an “accident” as defined by Texas law and were thus not “occurrences” under the policies.    

Background

In Granite State Insurance Company v. Primary Arms, LLC, the insurance dispute arose from lawsuits by the State of New York and the cities of Buffalo and Rochester against Primary Arms, LLC (“Primary Arms”), a ...