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Scottsdale seeks out of BioQ D&O coverage via creditors exclusion
Scottsdale’s request centers on a D&O policy with a $4 million maximum aggregate from August 2025 to August 2026, and it is also asking to recover defense costs after appointing three law firms.
Scottsdale Insurance Company, a Nationwide subsidiary, has asked a Northern California federal judge to confirm it does not have to defend or pay claims under its directors and officers insurance policy for BioQ Pharma and seven current and former BioQ directors and officers.
The D&O policy at issue has a $4 million maximum aggregate and runs from August 2025 to August 2026. After the underlying lawsuit was filed on June 23, 2026, Scottsdale moved to defend BioQ and its directors, appointing three separate law firms while reserving the right to challenge coverage.
Scottsdale now wants to exit the coverage obligation and recover defense costs. It points to a creditors exclusion in the policy, which it says bars coverage for claims brought by, on behalf of, or for the benefit of any creditor of the insured company, whether secured or unsecured.