New York court rules on NFL concussion insurance coverage

A New York appeals court has issued a significant ruling regarding insurance coverage for the National Football League’s concussion litigation. In the case of Discover Property & Casualty Co. v. National Football League, the Appellate Division, First Department, ruled that each former player’s alleged injury constitutes a separate “occurrence” under applicable insurance policies.

This decision prevents the claims from being bundled into a single massive event. Consequently, the individual claims do not reach the $51 million threshold required to trigger the fifth-layer excess policy held by American Guarantee and Liability Insurance Co. (AGLIC), meaning that insurer is not required to reimburse the league for the concussion settlement.

The court also addressed arguments from TIG, the insurer of the primary policy. TIG had argued that head injuries were an inherent risk of football or that all injuries constituted a single occurrence due to alleged concealment of risks. The court rejected these arguments, stating that the “occurrence” is the development of neurodegenerative diseases, which occurred to different players at different times and locations. Additionally, the court reversed a lower ruling that classified NFL football as a “product” subject to specific liability limits.