Insurance coverage issues commonly arise regarding multiple claims against insureds alleging arguably related wrongful acts. Coverage may be affected, under a claims-made policy of insurance, if a claim is deemed to relate back to a prior claim.
When a claim relates back to a prior claim, coverage may be impacted if: (a) the earlier policy has a different limit of liability; or (b) the prior policy’s limits are partly or completely exhausted. Additionally, if a claim is deemed to relate back to a prior claim, coverage may be unavailable due to (a) the applicability of exclusions in the current policy for prior or pending lawsuits or prior acts and (b) the nonexistence of a prior policy, at least with the same carrier.
