Jeremy Salzman and Kylie Tomas Co-Author Article in The D&O Diary: No Choice of Law in Delaware Coverage Disputes?

September 19, 2019

In an article featured in The D&O Diary, a periodic journal containing items of interest from the world of Directors & Officers Liability, Jeremy Salzman, SVP, Head of CML and FI Claims, and Kylie Tomas, VP, Head of FI Claims, discuss the impact of the Delaware courts expanding their influence into the area of insurance law in light of the recent wave of decisions in which Delaware courts have applied Delaware law to insurance coverage disputes.

Mr. Salzman and Ms. Tomas note that, “This unfortunate trend has significant consequences for insurance carriers issuing policies to Delaware-incorporated insureds. These include the increase in the number of coverage actions filed by policyholders against insurers in Delaware, as well as the application of Delaware insurance law, which is often less favorable to insurers than the law of other jurisdictions.” In addition to detailing why this matters for insurers, they highlight steps that insurers can take, both with respect to those policies already in the marketplace and future policies in response, but note that, “absent a choice of law provision or other policy built-in procedure, this appears to be the ‘new normal,’ at least for now.”

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