Hunton Insurance Recovery Blog

In a significant decision, Starstone Ins. SE v. City of Chicago, No. 23-2712 (7th Cir. Apr. 02, 2025), the US Court of Appeals for the Seventh Circuit has ruled that an insurer must cover $3.75 million in attorney fees incurred by the city of Chicago in an underlying civil rights lawsuit that settled for over $18 million.

For decades, homeowners and other insurance policies have included broad pollution exclusions, often referred to as a “total pollution exclusion.” In a recent decision in Wheeler v. Garrison Prop. & Cas. Ins., No. S-18849 (Alaska Feb. 28, 2025), the Alaska Supreme Court held that a “total pollution exclusion” in a homeowners insurance policy did not apply to exclude coverage for injury arising out of exposure to carbon monoxide emitted by an improperly installed home appliance. Examining the breadth of the exclusion and applying the generally held principle that exclusions are to be construed narrowly, the court thus fulfilled the policyholder’s reasonable expectation of coverage for injuries resulting from the carbon monoxide exposure. 

Theft in the cargo industry has skyrocketed in recent years. In the first half of 2024, cargo thefts rose 49 percent and the average loss per shipment by 83 percent. Given these dramatic spikes in cargo theft, policyholders whose operations rely on the safe transportation and trade of cargo should take steps to mitigate against the potential losses of a cargo-theft event. We discuss below the insurance coverage options available to policyholders that can help protect against the risks and losses associated with cargo-related theft if such a loss occurs.

Law360 has appointed insurance coverage counsel Jorge R. Aviles to serve on its 2025 Editorial Board for Insurance Authority Specialty Lines. As a member on the Editorial Board, Jorge will provide feedback on publication coverage and insight on how to best shape future coverage. Jorge’s appointment to the Editorial Board reflects Hunton attorneys’ reputations as leaders in the insurance coverage field and recognizes their valuable insights and contributions to thought leadership. Law360 also appointed Hunton partner Gregory G. Hesse to serve on the Editorial Board for Bankruptcy.

NCAA March Madness tournaments are among the most anticipated and exciting events in American sports, drawing millions of viewers and generating significant economic activity. But the massive popularity of the tournaments comes with risks that can affect participants, venues, sponsors, and fans. From injuries to property damage and event-related cancellations, this post explores the potential risks and the insurance products available to mitigate the risks associated with major sporting events, concerts, or festivals.

A Delaware trial court recently applied the newly minted “meaningful linkage” standard to conclude that multiple lawsuits concerning the merger of CBS and Viacom are not “related” in the context of directors and officers (D&O) liability insurance. The decision in National Amusements, Inc. v. Endurance American Specialty Insurance Co., Case No. N22C-06-018-SKR CCLD (Del. Super. Ct. Feb. 17, 2025), illustrates the fact-intensive nature of the “relatedness” inquiry and how litigants can expect courts to examine the issues under the Delaware standard.

The trend of Delaware court decisions favoring policyholders continues with a favorable ruling in AMC Entertainment Holdings, Inc. v. XL Specialty Insurance Company, et al. The Delaware trial court found that AMC’s settlement payment, made in the form of AMC shares valued at $99.3 million, qualified as a covered “Loss” under its directors and officers (D&O) liability insurance policy. This ruling is noteworthy for a variety of reasons, particularly because it establishes that non-traditional forms of currency, like stock, can be a covered “Loss” under D&O policies.

Artificial intelligence (AI) is en vogue. As it rapidly reshapes industries, companies are racing to integrate and market AI-driven solutions and products. But how much is too much? Some companies are finding out the hard way.

The legal risks associated with AI, especially those facing corporate leadership, are growing as quickly as the technology itself. As we explained in a recent post, directors and officers risk personal liability, both for disclosing and failing to disclose how their businesses are using AI. Two recent securities class action lawsuits illustrate the risks associated with AI-related misrepresentations, underscoring the need for management to have a clear and accurate understanding of how the business is using AI and the importance of ensuring adequate insurance coverage for AI-related liabilities.

The New York Commercial Division, the specialized arm of the New York State Supreme Court composed of justices experienced in handling complex civil matters, recently amended its rules to clarify how actions seeking equitable or declaratory relief will be valued for purposes of meeting the Commercial Division’s monetary thresholds. See AO/038/25 (Jan. 28, 2025).

Still feeling the love from Valentine’s Day, this 2024 Year in Review highlights the most swoon-worthy coverage decisions of 2024 and offers a glimpse of the future of insurance coverage litigation in 2025 and beyond.

In 2024, D&O coverage and core insurance law principles were the true heartthrobs of the year, while rulings on environmental, social, and governance (ESG) issues showed that insurance disputes can arise in any situation. But the real cupid’s arrow? Policy interpretation—still the key to unlocking these cases. As we reflect on the year, this edition of our Year in Review highlights the most love-worthy coverage decisions of 2024 and examines the evolving landscape of insurance coverage litigation heading into 2025.