D&O Insurance: Special Event Exclusion Does Not Preclude Subsequent Litigation Coverage

As I have frequently noted, a recurring and vexing D&O insurance issue is the question of relatedness between different claims. Another frequent D&O insurance coverage issue is the question of the applicability of a special event or prior litigation exclusion. A recent Southern District of Indiana decision, applying Indiana law, addressed both of these issues in the course of determining that a Special Event Exclusion in Emmis Communications Corp.’s D&O insurance policy did not preclude coverage for the defense costs the company incurred in defending a shareholder suit relating to the company’s preferred stock. The decision is very fact specific, but because of the range of issues involved, the opinion is interesting and it also underscores the critical importance of the precise wording used in exclusionary clauses. The March 21, 2018 opinion can be found here.   Background The factual background to this insurance coverage dispute is intricate but…

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