In recent years, Delaware courts have issued several choice of law rulings applying Delaware law to insurance disputes involving directors and officers of companies that were incorporated in Delaware even where other factors, like the location of company headquarters or the place of policy negotiation, suggest that the company had more significant contacts in a different state.

Two decisions issued within the last month by Delaware courts demonstrate that, along with a preference for applying Delaware law to these cases, the Delaware courts are increasing leaning toward the insured’s position in disputes over directors and officers (D&O) insurance coverage.