An Eye On Mass Tort Litigation Insurance Coverage


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PUBLISHED ON: July 9, 2009

Following President Obama’s May 20, 2009, “Memorandum for the Heads of Executive Departments and Agencies,” it is critical for policyholders susceptible to mass tort litigation to ensure that their insurance policies and programs provide the proper coverage for such mass tort suits.

The memorandum, which is aimed at rolling back the federal regulatory policies of the Bush administration that sought to limit jurisdiction for such suits by way of an aggressive preemption regulatory system, is likely to result in increased mass tort litigation in a variety of state and federal jurisdictions.

Because of the protracted and costly nature of mass tort litigation, policyholders need to evaluate their insurance programs with an eye toward the concerns specific to these suits, notably the payment of defense costs.