About the Course
Introduction
This CLE webinar will address allocation issues under D&O policies, recent landmark decisions under Delaware law on allocation, the "relative exposure" and "larger settlement" rules, and how insurers would demonstrate whether non-covered parties or claims increased the settlement amount.
Description
D&O insurance policies almost always provide that the insurer and its policyholder will use their best efforts to determine a fair allocation of losses between covered and non-covered losses, taking into account their relative legal exposures. This will apply to both costs of defense and indemnity. However, if the parties cannot agree and decide to litigate allocation, the provision may or may not be held to require the same type of allocation. Different jurisdictions take different approaches, with some courts not requiring allocation at all.
Recently, in an important and influential development, Delaware, a significant jurisdiction for D&O controversies, held that it would follow the "larger settlement rule." This policyholder-friendly rule provides that the total settlement is allocated to covered claims except to the extent the insurer can demonstrate that uncovered claims or parties increased the settlement amount. How insurers demonstrate whether and how much uncovered claims or parties might have increased the amounts paid is a complex and time-consuming endeavor.
Listen as our experienced panel of insurance coverage practitioners discusses allocation issues under D&O policies, recent Delaware decisions on allocation and the law in other key jurisdictions, and how insurers would demonstrate whether non-covered parties or claims increased the settlement amount.
Presented By
Mr. Pappas represents corporate and individual policyholders with complex insurance coverage matters. He works on a variety of insurance policies, including directors and officers liability, builders’ risk, errors and omissions liability, commercial general liability, and representations and warranties insurance. Mr. Pappas's clients include public companies, private equity-backed businesses, financial institutions, real estate developers, nonprofits, and directors and officers. He has a dual focus on litigation and advisory work. Mr. Pappas represents policyholders in coverage disputes in courts and arbitration forums across the country, including cases involving nine-figure recoveries. He also supports clients throughout the insurance process, from placing and negotiating policies to developing coverage strategies during investigations and disputes. He pays particular attention to maximizing recoveries and addressing new risks, especially those related to artificial intelligence and other emerging issues.
Mr. Small is a commercial litigator focusing on insurance coverage disputes and counseling on behalf of policyholders. His educational background and prior experience as an insurance broker and advisor provide him with a deep understanding of the insurance industry, enhancing his ability to represent policyholders across a broad spectrum of policies. Mr. Small regularly represents clients in connection with claims under policies providing coverage for commercial property, cyber, builders’ risk, D&O, E&O, general liability, and representations and warranties. He also helps client's recovery under surety bonds and represents clients in professional liability matters, such as insurance broker malpractice. Mr. Small frequently provides thought leadership on insurance issues. He writes extensively on insurance coverage, presents to industry professionals, and has been quoted in prominent publications. Mr. Small is also a contributor to the Firm’s Insurance Recovery Blog.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Tuesday, September 15, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. Overview of standardization of policy language on allocation
II. Relative exposures rule
III. Larger settlement rule
IV. Recent cases under Delaware law: Hemisphere Media Grp. Inc. v. Fair Am. Select Ins. Co. (June 18, 2026)
V. Demonstrating whether non-covered parties or claims increased the settlement amount
The panel will review these and other important issues:
- What type of policy language supports requiring a court to follow the relative exposures rule?
- Why has the Hemisphere Media case been a disrupter of sorts?
- What factors would demonstrate that covered parties or claims increased the settlement amount?
Related Courses
D&O Insurance Allocation and Larger Settlement Rule: Impact of New Developments Under Delaware Law
Tuesday, September 15, 2026
1:00 PM ET/10:00 AM PT
