Amendment Approved, Clarifying Insurance Cases NY Commercial Division May Hear

In June, we wrote about the Commercial Division Advisory Council’s proposed amendment to 22 NYCRR § 202.70 to clarify what types of insurance cases may be heard. That amendment was approved October 8.

The New York Commercial Division is a leading court where complex insurance disputes are resolved. Disputes must meet a monetary threshold. But the Commercial Division’s rules offered limited explanation as to what comprises “commercial insurance coverage,” leading to confusion among judges and litigants.

The amendments clarify that:

• Cases involving “environmental insurance coverage” must relate to environmental damage or mass torts.
• “Commercial insurance coverage” includes coverage under policies insuring (i) directors and officers; and (ii) liability, loss, or damage related to commercial property (including cargo and stored property), commercial liabilities, errors or omissions, cyber activities, commercial representations or warranties, title to commercial property, and business interruption.
•  Even if the monetary threshold is met, the Commercial Division will not hear:
  • cases seeking insurance coverage that does not qualify as coverage for environmental damage or mass torts or commercial insurance coverage (such as cases seeking insurance coverage for personal injury or property damage under individual homeowners or individual auto policies)
  • actions by insurers to collect premiums or rescind non-commercial parties.

The amendments also explain that the Commercial Division will not hear cases underlying the insurance dispute simply because they relate to the insurance coverage action.

The amended rule takes effect on November 3, 2025. You can view the amended rule here.