Insurance is an often overlooked but critical asset for companies involved in a bankruptcy proceeding as either a debtor or creditor. In fact, insurance issues arise in some way in virtually all bankruptcy proceedings. In some cases, such as those involving significant asbestos liabilities proceeding under Section 524(g) of the Bankruptcy Code, insurance plays a central role as one of the principal funding mechanisms for reorganization. However, even in cases that are not driven by mass tort liabilities, insurance issues routinely arise that require experienced insurance counsel. Blank Rome’s attorneys have significant experience representing various constituencies in reorganizations and liquidations, including debtor policyholders, their officers and directors, creditors with insurance rights as an additional insured, creditors’ committees, and future claims representatives.
Attorneys in the Firm’s insurance coverage practice also have played central roles in all phases of a bankruptcy proceeding, from assessing coverage issues prior to the petition date, to assisting with confirmation of a plan of reorganization and securing insurance rights after emergence. Members of the practice also have significant experience representing policyholders in insurer insolvencies, rehabilitations, and solvent schemes of arrangement. As a leader in insurance recovery, Blank Rome can assist clients in navigating through the complications inherent in bankruptcy and maximize the possibility of future recoveries.