Hunton Insurance Recovery Blog

Policyholders facing “related” claim denials under D&O policies should take note of the recent Delaware Superior Court decision, Big V Capital LLC v. Great American Insurance Company (Del. Super. June 30, 2026), where the court held that a derivative action filed during a renewal policy period was covered—even though it was related to an earlier books-and-records action that the policyholder had not reported under the prior policy. The decision turned on the specific structure and wording of the policy at issue but reinforces core policyholder-friendly principles under Delaware law, including construing coverage broadly while refusing to deny claims absent a clear and specific exclusion.

A federal district court judge in Connecticut recently agreed that an insurer did not owe coverage under a “claims-made” D&O liability insurance policy where the policyholder failed to give timely notice of a suit arising from a loan default.  Although the ruling killed the claim, the decision also offered guidance on two critical – and commonly cited – exclusions: the “related claim” and “pending or prior claim” exclusions.  The court held that neither exclusion applied under the factual nexus test used by the court, reminding policyholders and insurers alike that ...