Following the purchase of one corporation by another, shareholders of the acquired organization frequently bring lawsuits alleging that the purchase price paid by the acquirer — and thus the price received by the acquiree’s shareholders — was too low. In some situations, insureds intentionally negotiate a below-market acquisition price and then allow insurance proceeds paid in response to the inevitable shareholder objection to supplement that price to achieve a fair-market value in the end. “Bump-up” exclusions in D&O liability policies preclude coverage for such losses.
The cost of cargo theft losses is surging, even though the number of reported incidents has not changed. This surge reflects the type of cargo being stolen — thieves are targeting high-value technology, including electronics, computer chips, and servers destined for high-tech facilities and data centers. These components can be worth tens of millions of dollars per shipment, thus making proper insurance more important than ever. This Letter explains what you should know about insuring your goods while in transit. The John Liner Tip takes a closer look at stock throughput policies.
Insurance bad faith law holds insurers accountable when they act dishonestly, unreasonably, or unfairly on a claim. Key issues include first-party vs. third-party claims, common unfair practices, and what a policyholder can recover. In this Letter, we explain what you should know about what actions the law considers insurer bad faith.
