The Fourth Circuit is set to weigh in on the ongoing debate about whether hotel owners are owed coverage for legal claims related to the federal Trafficking Victims Protection Reauthorization Act, or TVPRA.

Insurance experts say the case could help clear a pathway to success for policyholders looking to secure coverage, or even get the issue before the U.S. Supreme Court if the case results in more disagreement.

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Dennis J. Nolan, a shareholder and policyholder attorney at Anderson Kill PC, told Law360 it's not surprising that the insurers made the argument that Coverage A and Coverage B are intertwined and that neither provides coverage for Tilma.

This argument, however, doesn't hold up because a claim can trigger multiple coverages, Nolan said. Here, the insurers may think they have a better chance at disclaiming a duty to defend under Coverage A, hence their argument that the underlying claims are connected to this coverage form, he said.

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