A Policyholder/Debtor with Comprehensive General Liability (“CGL”) insurance has a strategic decision to make: Should the Policyholder/ Debtor protect and preserve its insurance for post-bankruptcy claims, or seek to maximize the insurance proceeds available to satisfy third-party claims?
Environmental Claims, CGL Policies and Bankruptcy
A Policyholder/Debtor with Comprehensive General Liability ("CGL") insurance has a strategic decision to make: Should the Policyholder/ Debtor protect and preserve its insurance for post-bankruptcy claims, or seek to maximize the insurance proceeds available to satisfy third-party claims? Although the Policyholder/Debtor cannot dictate how its policies are treated during the bankruptcy proceeding, without determining a strategy the Policyholder/Debtor cannot hope to influence the outcome. This article addresses the situation where a Chapter 11 Policyholder/Debtor faces third-party environmental claims. Although this area of law is still developing and varies from one jurisdiction to another, the Policyholder/Debtor should consider certain key issues when determining its strategy for dealing with its CGL insurers.
This premium content is locked for LawJournalNewsletters subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.






