Directors’ and officers’ (D&O) liability insurance policies typically contain clauses providing that related claims or claims arising out of interrelated wrongful acts will be treated as a single claim deemed to have been first made when the first of the related claims was asserted against the insured. The policy language defining related claims and interrelated wrongful acts is typically very broad and courts have wrestled with how to interpret these provisions to determine whether one or more claims are, in fact, related claims. In many cases, whether there is coverage or not will hinge on this very issue.

In a 2014 column, we reviewed New York case law construing related claims language in D&O policies, finding that the outcome of the cases was very much dependent on the facts. We also found that New York courts tend to broadly interpret the relevant policy language, generally holding that claims are related whenever there is a sufficient factual nexus between two or more claims. “Related Claims Are in the Eye of the Beholder,” NYLJ, Vol. 252-No. 9 (July 15, 2014).

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