January 2026 Insurance Update

Claims-made policies have automatic extended reporting periods that last for a stated amount of time. But those extensions end if the insured purchases a new policy. What if the new policy does not cover the claim? Is the extended reported period reinstated? As a Maryland federal court explains, that depends on the language of the policy.

Fraud and professional liability policies don’t mix well. An Illinois federal court explains why financial interest and consumer protection law exclusions bar claims arising out of real estate fraud. The “but for” test plays a critical role.

When it comes to claims for bad faith, New Jersey applies the “fairly debatable” standard. It will also dismiss a bad faith action duplicative of a breach of contract claim. A manufacturer required to remediate PFAS contamination saw its bad faith claim dismissed for these reasons.

A small hole in a water pipe did a lot of damage to the insureds’ home. But the Ninth Circuit affirmed that this type of leak fell within the wear and tear exclusion.

We try to cover a variety of insurance issues in our updates. We hope you find them informative.