Hunton Insurance Recovery Blog

In Illinois National Insurance Company v. Harman International Industries Incorporated, No. N22C-05-098 (Del. 2026), the Delaware Supreme Court affirmed D&O coverage for a $28 million settlement of a securities class action, finding the policies’ “bump-up” exclusion inapplicable to the settlement.

In a recent legal update, Hunton attorneys Steven Haas, Johnathon E. Schronce, Geoffrey B. Fehling, and Madalyn Moore discuss important takeaways from the Harman decision for policyholders who find themselves embroiled in M&A litigation. The decision underscores the continued relevance of bump-up exclusions, how those exclusions can lead to coverage disputes involving M&A litigation, and the importance of policyholders’ awareness of potential bump-up coverage issues when placing or renewing D&O coverage, pursuing transactions, and defending and settling deal-related claims.