Untimely Claims Preclude Attempt To Arbitrate Coverage Dispute

The Court of Appeals of Indiana, applying Indiana law, has held that an arbitration provision in the insured company's business owners' policies was inapplicable because the claims at issue were not brought until after the coverage period had expired. Illinois Cas. Co. v. B&S of Fort Wayne Inc., 201 N.E.3d 690 (Ind. Ct. App. Jan. 11, 2023).

The insured company owns two Indiana-based nightclubs. In October 2020, several professional models sued the company for allegedly using their photographs in advertisements and posting those advertisements on the clubs' social media accounts without the models' permission. The alleged conduct occurred between 2014 and 2020. The company sought coverage for the suit under its business owners' insurance policies, which included specified coverage for "personal and advertising injury." The policies were in effect from November 2014 to August 2020. In 2016, the insurer added a claims-made cyber protection endorsement (the