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Second Circuit Rules that CGL Insurer Must Provide Defense Coverage for PFAS-Related Environmental Claim

Bradley J. Nash — Wed, 20 May 2026 09:00:01 -0400

This week at the Coverage Corner, we examine a Second Circuit decision that wades into hot-button topic: liability coverage for environmental claims involving PFAS (colloquially known as “forever chemicals”). In a summary ordered issued on May 4, 2026, in Town of Harrietstown v. Westchester Fire Ins. Co., Case No. 22-253-cv, the Second Circuit affirmed a decision from the Northern District of New York, granting summary judgment to the insured on its claim for defense costs. We wrote about the district court’s decision in an article in Chambers’ 2026 Insurance & ...

Delaware Supreme Court Holds That D&O Policy’s “Bump-Up” Provision Does Not Exclude Coverage for $28 Million Post-Merger Securities Settlement

Milan J. Sova — Tue, 05 May 2026 09:00:02 -0400

Earlier this year, the Delaware Supreme Court issued an important 3–2 decision on the application of a “bump-up” provision to losses arising from a merger transaction. (See our previous post about this type of policy provision, here.) In Illinois National Insurance Co. v. Harman International Industries, Inc., C.A. No. N22C-05-098 (Del. Jan. 27, 2026), the court affirmed an award of summary judgment for the policyholder, holding that three D&O insurers—AIG, Chubb, and Berkley—could not invoke a “bump-up” provision to deny coverage for a $28 million settlement of ...

Federal District Court in Washington State Rules That Insurer Acted in Bad Faith By Denying Defense Coverage Based On “Arguable” Interpretation of the Policy

Wendy Tsang — Tue, 28 Apr 2026 09:00:03 -0400

This week on Coverage Corner, we revisit Adolph v. General Casualty Company of Wisconsin, a coverage action in the United State District Court for the Western District of Washington, that we previously covered here. In a decision issued on April 15, 2026, the court granted plaintiffs’ motion for reconsideration and clarified the consequences of an insurer’s denial of coverage based on an unreasonable interpretation of policy language.

Background: The Prior Summary Judgment Order

In its original summary judgment order, the Court held that the insurer, RSUI, had breached its ...

Ninth Circuit Rules Insurer Acted in Bad Faith by Denying Insured a Defense Where “A Conceivable Basis for Coverage Existed”

Bradley J. Nash — Fri, 10 Apr 2026 09:00:04 -0400

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 ...

Experts Are Bracing for a “Brutal” Wildfire Season—Now is the Time for Utility Companies and Other Business with Exposure to Wildfire Liabilities to Stress-Test Their Insurance Programs

Bradley J. Nash — Thu, 26 Mar 2026 09:00:05 -0400

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 ...

Canons of Construction: Divided Panel of the Second Circuit Holds General Contractor Entitled to Additional Insured Coverage Under Subcontractor’s CGL Policy

Washington Federal Court Addresses Reformation of CGL Policy, and Late Notice and Prior Acts Exclusions under D&O Policy

Delaware Court Rules DOJ’s Civil Investigative Demand Constitutes a Covered Claim

Seventh Circuit Clarifies Excess Insurer Duties and Additional Insurer Analysis Under Indiana Law

Southern District Uses Mutual Mistake Doctrine to Reform Policy and Find Coverage