HNRK Coverage Corner

This week at the Coverage Corner, we discuss Flextronics Int’l, Ltd. v. Allianz, 25-CV-1511(PAE)—a recent decision out of the Southern District of New York that examines an often disputed, but less-frequently litigated, issue in the realm of D&O coverage:  the allocation of a settlement payment between covered and non-covered loss.  Settlements often resolve a mix of claims against the insureds, some of which (such as securities fraud) may be subject to coverage and others of which (such as breach of contract claims) may not be.  Alternatively, the same settlement might be made on ...

This week at the Coverage Corner, we take a look across the river at a decision from the U.S. District Court for the District of New Jersey that held a dishonest employee’s multi-year scheme to steal money from his employer was one occurrence subject to the per-occurrence limit for a single policy year.  Whether a loss is the result of a single occurrence or multiple occurrences can be a critical question in coverage litigation.  We have previously written about the issue in the context of wildfire liability coverage and, like today’s issue, employee theft.

In today’s case ...