In late March, a jury in California held Meta and YouTube liable for millions of dollars in damages related to the allegedly addictive design of its social media platforms, Facebook and Instagram—a decision Meta has vowed to appeal. However, an earlier, separate decision related to that case is garnering attention for its insurance coverage implications.

On February 27, the Delaware Superior Court issued its ruling in Hartford Casualty Insurance Co. v. Instagram LLC, a case brought against Meta—the parent company of Instagram and Facebook—and multiple insurance companies. The court ruled in favor of the insurers, finding they could deny coverage for Meta’s defense costs for addiction-related claims, including claims pleaded as negligence. If upheld, the ruling could allow more than 20 insurers, including units of The Hartford and Chubb Ltd., to avoid funding Meta’s defense in the social media addiction multi-district litigation pending in the Northern District of California, as well as related state court actions.

Read the full article at Risk Management Magazine.