- Commercial General Liability (CGL) Policies: These policies may offer coverage for certain advertising-related injuries or reputational harm, though insurers often contest claims involving willful or knowing violations.
- Directors & Officers (D&O) Liability Insurance: When individual executives are named in lawsuits, D&O coverage can be invoked to defend them, especially if there’s an allegation of misconduct tied to corporate decisions.
- Umbrella/Excess Coverage: In high-dollar cases—such as this $1 billion demand—companies may tap into umbrella or excess insurance layers if the primary policy limits are reached.
How exactly insurance defense will come into play for the 5-Hour defendants remains to be seen. Insurers might challenge coverage if they believe the alleged misconduct was intentional, or they might reserve their rights while tentatively paying for legal defenses. Such behind-the-scenes negotiations can influence the defendants’ strategy, shaping their willingness to settle or fight aggressively in court.
