State courts across the country will evaluate general liability policy language in the new year as the Illinois Supreme Court tackles whether certain regulatory permits serve as an exception to a pollution exclusion and a Delaware trial court considers possible coverage of talc claims.

Here, Law360 looks at the top cases to watch in 2026.

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Robert M. Horkovich, a policyholder attorney at Anderson Kill PC, told Law360 that parties involved in other toxic tort litigation can learn from the Avon litigation. Their money may be better spent in working the policyholder, insurance clients, and the debtors in bankruptcy proceedings than spending millions of dollars on insurance company lawyers "to object to them to no effect," he said.

Insurers may believe that they can make more money in interest savings in delaying policyholder recovery, but as seen in the Avon bankruptcy proceedings, the insurers' objections were for naught, Horkovich said.

"It would be better for the insurance industry to consider working with the policyholder and working with the debtors on a cooperative plan," he said.
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