Article ID: 54f356b0d92a27e1f8ae0b9509a1565a1222cc390c4c4b35388d876f1d5eb4d0
Source ID: secondary:businessinsurance.com
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URL: https://www.businessinsurance.com/truck-maker-wins-partial-appeal-in-do-coverage-dispute/
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Truck maker wins partial appeal in D&O coverage dispute - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Truck maker wins partial appeal in D&O coverage dispute by Gavin Souter Coverage Disputes , D&O Lloyd's of London Jun 11, 2026 Electric pickup truck company Nu Ride won a partial victory Tuesday when a New York appeals court held that the company is entitled to advancement of defense costs under its directors and officers liability policy. In Certain Underwriters at Lloyd’s v. Nu Ride Inc. , the Appellate Division of the New York Supreme Court, First Department, modified a 2025 ruling that Lloyd’s of London insurers had no duty to defend, indemnify or advance defense costs in connection with underlying lawsuits and regulatory investigations involving the company. Nu Ride, formerly known as Lordstown Motors Corp., was sued, along with certain directors and officers, in a series of actions alleging that they misrepresented the status of orders for the company’s vehicles. The complaints alleged misconduct both before and after the policy took effect, including insider trading, concealment of vehicle-testing failures in early 2021 and mismanagement that allegedly enriched executives through compensation and bonuses. The insurers issued Nu Ride a claims-made D&O policy for Oct. 23, 2020, to Oct. 23, 2021. The policy excluded coverage for claims arising from conduct that occurred before the policy began, as well as related conduct tied to those earlier acts. Lloyd’s denied coverage, arguing that the claims arose from conduct that began before the policy period and therefore fell within the retroactive date exclusion. The appeals court found that while some allegations potentially fell within the exclusion, the insurers failed to establish that every cause of action depended on excluded pre-policy conduct. Because some claims could remain viable absent the excluded acts, Nu Ride was entitled to defense costs, the panel held. The court also ruled that a subpoena issued to executive Julio Rodriguez during the policy period triggered the insurers’ obligation to advance defense costs because it was not limited to pre-policy conduct. However, the court otherwise affirmed the lower court’s ruling, including its determination that Lloyd’s properly denied coverage for SEC document subpoenas directed solely to the company because they did not qualify as covered securities claims under the policy language. Related News Paw and order June 11, 2026 Insurer must defend COVID-19 tuition refund suits: Appeals court June 11, 2026 Willis Re hires former Guy Carpenter Bermuda chief June 11, 2026 California cumulative trauma comp claims rise sharply June 11, 2026 Amwins, Dragoneer make bid $5.4B for Steadfast June 11, 2026 Mexico doubles parametric cat cover June 11, 2026 Gallagher takes majority stake in Saudi broker June 11, 2026 Quake to result in limited insured losses: A.M. 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