Piedmont Office Realty Trust, Inc. v. Xl Specialty Insurance Company

Thompson, Chief Justice.

Piedmont Office Realty Trust, Inc. (“Piedmont”) purchased and maintained two insurance policies — a primary policy issued by Liberty Surplus Insurance Company and an excess coverage policy issued by XL Specialty Insurance Company (“XL”). The primary policy provided coverage of up to $10 million for claims against Piedmont. The excess policy provided an additional $10 million in excess of the primary policy’s coverage limits.

The excess policy provides that XL will only pay for a “loss” which Piedmont becomes “legally obligated to pay as a result of a securities claim.”…