Travelers Probed for Denying Coverage in Jeld-Wen Investor Case

Judges on a federal appeals panel grappled with how to interpret language in a Travelers Cos. unit’s insurance policy used to deny coverage for door manufacturer Jeld-Wen Holding Inc. in a securities suit that followed antitrust litigation against the company.

The provision in the directors and officers liability insurance policy treats all claims “for the same Wrongful Act, any Interrelated Wrongful Acts, or the same or related facts, circumstances, or situations” as a single claim.

But the language is a “garden salad” of words that offers competing standards for relatedness—and because it’s ambiguous, it should be construed against the insurer ...