Eighth Circuit Opinion Provides Potential New Coverage Defenses to Claims Asserted Against Bankrupt Insured

John C. Kilgannon
Covered Events

When an insured files for bankruptcy protection, coverage counsel and claims handlers alike will often cringe at the notion of adjudicating claims in an unfamiliar, and often hostile, territory. There is no question that a bankruptcy proceeding can significantly amplify the risks faced by an insurer when defending an otherwise garden variety claim. However, insurers rarely appreciate that a bankruptcy filing can present a unique set of opportunities that are not available outside of the bankruptcy forum.

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