HNRK Coverage Corner

On April 6, 2026, the Ninth Circuit issued a decision in Bramblett v. Allied World Specialty Ins. Co., Case No. 25-489, holding that Allied World acted in bad faith in denying a defense to its insured based on a Sexual Abuse Exclusion, where “a conceivable basis for coverage existed” as to at least some claims asserted in the compliant.

In Bramblett, the plaintiffs alleged they were the victims of sexual misconduct by an employee of the insured, including both verbal harassment and physical misconduct.  The insured’s policy expressly covered losses arising from claims alleging ...

The Washington Post reports: “Wildfires are ripping across the Great Plains, and other fare ups are popping up in Arizona and Colorado remarkably early this year.”  Experts predict that the “fire season ahead is a recipe for concern—perhaps signaling an expanding frontier for fire risk in broader patches of the western half of the United States.” 

Heading into what is anticipated to be a “brutal” wildfire season, utility companies and other businesses are increasingly exposed to liability for the resulting losses.  Liability insurance policies may provide coverage ...

Construction begets injuries, which beget lawsuits, which beget liability insurance claims, which frequently beget coverage disputes and litigation that raise a unique set of issues (see previous Coverage Corner posts on construction insurance issues here). Today at the Coverage Corner, we examine a recent Second Circuit decision that takes a deep dive into the canons of construction (think contra proferentem, the “rule of the last antecedent” and the “series qualifier canon”) to resolve a dispute over insurance coverage for a real-life construction injury claim ...

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 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 ...