A federal district court, applying Virginia law, has held that the “Bump-Up” exclusion in a D&O insurance policy does not unambiguously apply to preclude coverage for the settlements of underlying actions relating to the 2016 merger of Towers Watson and Willis. The court construed the exclusion narrowly and based on a reasonable interpretation most favorable to the insured, Towers Watson, determined that the settlements  were not excluded from the definition of Loss under the Bump-Up exclusion.  A copy of the court’s October 5, 2021 opinion can be found here.
Continue Reading Court Holds Bump-Up Exclusion Does Not Unambiguously Preclude Coverage