Insights

Washington – June 26, 2025: Crowell & Moring hosted its 26thannual George Bailey Public Service Awards ceremony. Named after the hero of the classic movie, “It’s a Wonderful Life,” these awards recognize the firm’s lawyers and staff who have made a substantial impact on the lives of others through their pro bono efforts.

In Wake Chapel Church, Inc. v. Church Mutual Insurance Company, the Fourth Circuit affirmed a $1.1 million jury verdict in favor of a policyholder, reaffirming that under North Carolina law insurers cannot defeat all-risk coverage by pointing to a postulated inherent defect or other excluded cause if a covered peril also contributed to the loss.

Because effective Directors & Officers insurance (D&O) is becoming even more important for companies and their leaders, particularly for peace of mind and financial soundness in our highly litigious society, we provide this coverage alert.  

On January 27, 2026, the U.S. District Court for the Northern District of Texas ruled favorably for policyholders in a major ongoing cyber-insurance dispute between Southwest Airlines and Liberty Insurance when it accepted the Magistrate Judge's findings and recommendations in Southwest Airlines Co. v. Liberty Insurance Underwriters Inc., Civil Action No. 3:19-CV-2218-E, the court reinforced critical legal protections for policyholders facing coverage denials.