Insurance & Reinsurance

Steptoe represents major national and international insurers in complex, high value coverage disputes under commercial property and marine policies, as well as first-party property reinsurance exposures. Steptoe excels at finding the best strategic approach, including litigating cases to trial or through motions practice, or reaching a non-litigated resolution when appropriate.

In recent years, our lawyers have been at the forefront in nationwide litigation concerning whether business losses incurred during the COVID-19 pandemic are covered under first-party policies. Serving as national coordinating counsel for two major property insurers, Steptoe lawyers have won hundreds of individual and many putative class action COVID-19 coverage cases in trial courts and appellate courts and prevailed in avoiding multidistrict litigation (twice). Steptoe’s other recent representations include prevailing on a large builder's risk claim, and addressing significant exposure cyber coverage claims and building collapse claims.

Our nationally recognized environmental coverage practice leads the industry in representing insurers in complex, multiparty coverage disputes arising out of environmental contamination and pollution with potential exposure in the hundreds of millions of dollars. We have secured precedent-setting victories in state and federal courts on a number of issues, including the proper interpretation of the pollution and asbestos exclusions, number of occurrences, application of limits of liability, what constitutes a suit, scope of damages, allocation of costs, late notice, consent to settlements, and the cooperation clause, to name just a few.  Steptoe also represents insurers with respect to emerging exposures, such as PFAS.

In addition to environmental exposures, Steptoe has significant experience with other third-party liability matters.  For instance, Steptoe has been involved in a multitude of matters involving abuse claims (e.g., Boys Scouts of America, clergy, reform camps) and those involving sports injuries, such as concussions.

Beginning in the 1980s with companies facing asbestos and silica liabilities, companies facing large-scale tort  liabilities increasingly have sought to use Chapter 11 bankruptcy filings as a means for resolving those liabilities, often to the potential detriment of their insurers. In recent years, we have seen these strategic bankruptcies extend to policyholders facing a broad array of potential liabilities, ranging from companies facing opioid liabilities to institutions such as youth clubs and religious entities facing sexual abuse claims. Our lawyers are at the forefront in representing insurers in these complex bankruptcy proceedings, which require careful coordination of frequently divergent bankruptcy and insurance law principles, as well as creative strategic planning. Steptoe lawyers have represented major insurers at the center of more than 50 insurance-related bankruptcies and/or threatened insolvencies.

Steptoe insurance group lawyers have handled multiple insurance coverage arbitrations under the Bermuda Form. Steptoe has served as lead counsel for insurance companies in multiparty arbitrations and mediations involving coverage claims for $1 billion, $600 million, £350 million, $100 million, and $70 million arising out of five "blockbuster" drugs and medical devices. Steptoe also successfully handled Bermuda Form multimillion-dollar disputes arising from the Deepwater Horizon explosion in the Gulf of Mexico.

Steptoe has represented life and health insurers in a variety of contexts, including disputes over the escheatment of life insurance proceeds to states.  Steptoe’s reinsurance practice regularly addresses disability and life insurance claims, and Steptoe has been involved in a myriad of disputes under YRT treaties. 

Steptoe’s reinsurance team regularly represents cedents, reinsurers, and retrocessionaires in high-profile arbitrations and litigation involving the full range of reinsurance issues in the United States, the United Kingdom, Europe, and Bermuda. We regularly litigate the duty of utmost good faith, follow the fortunes, disputes arising from the sale of large blocks of risk, and issues pertaining to the aggregation of risk under catastrophic reinsurance cover. Steptoe handles complex disputes at the forefront of the industry, including: catastrophes and natural disasters; asbestos and environmental; credit risk reinsurance; life reinsurance, oil & gas, utility and nuclear; aviation; surety and financial guarantee; workers’ compensation; disability and long-term care; alternative risk finance programs; broker negligence; professional liability; reinsurance disputes involving Russia; and MGA programs. Our representations have involved virtually every major issue to sweep through the reinsurance industry including: World Trade Center; Enron; Hurricane Katrina; the Financial Crisis and Financial Guarantee Company Insolvencies; Life Reinsurance YRT disputes; unclaimed property; pharmaceutical liability matters, environmental and asbestos exposures; London Market Excess (LMX) spirals; and brokerage bid-rigging issues affecting the purchase of insurance and indemnity cover. 

Steptoe routinely represents clients in contentious regulatory matters, and provides counselling in insurance regulation. Our practice excels in complex cases at the intersection of insurance with bankruptcy and contentious regulatory matters, and, as an example, our attorneys have litigated the first contested liquidation proceeding in over two and a half decades in New York and insurance disputes involving mis-selling of financial products in the UK.

In addition to handling claims and other contentious insurance matters, our London and Brussels offices advise on insurance and reinsurance regulation and assist in designing products and drafting wordings. Our lawyers also advise on cross sectoral regulatory matters, such as sustainable finance, cybersecurity and AI regulation, anti-money laundering, data protection, economic sanctions, competition, and corporate governance.