Hunton Insurance Recovery Blog

In a recent opinion addressing cross‑motions for summary judgment, a Pennsylvania state court set forth a clear holding that policyholders may recover post-judgment interest under excess liability insurance policies only when the policy language expressly says so—and only when the stated conditions are met. The decision underscores the importance for policyholders to thoroughly examine the defense and payment provisions outlined in their insurance policies.

If recent years have taught insurance practitioners anything, it is that the most consequential coverage disputes rarely turn on novelty alone. In 2025, courts continued to resolve high‑stakes insurance disputes by returning to first principles—examining when claims are related, how losses and occurrences are defined and aggregated, and how policy language allocates risk across time and conduct. D&O coverage and other core insurance law issues again occupied center stage, while decisions in property, cyber, and liability disputes reinforced a familiar theme: policy interpretation remains the decisive factor in determining whether coverage is available in an increasingly complex claims environment. As the decisions discussed below demonstrate, 2025 confirmed that even as risks evolve, coverage disputes remain grounded in careful, policy‑specific analysis.

The recent Illinois federal court decision McDonald’s Corporation, et al., v. Homeland Insurance Company Of New York illustrates the perils that policyholders may face if they fail to understand the contours of key defined terms in their insurance policies. In McDonald’s, the court agreed that an insurer who sold a general liability policy did not have a duty to defend its insured against claims alleging fear and emotional distress because that harm did not meet the definition of bodily injury in the insurance policy.

In today’s digital world, data breaches due to vendor failures are becoming increasingly common, often resulting in costly fallout. While insurance can provide a safety net, the interaction between cyber insurance and vendor contracts is crucial for effective recovery and risk management. Vendor contracts should not be treated as mere formalities but as vital frameworks that contain specific, detailed provisions regarding data security obligations to ensure accountability and minimize vulnerabilities.