A recent Wall Street Journal article, “These Insurers Might Resist Virus” from March 20, 2020, provides some positive news about the financial health of the Property and Casualty marketplace in the context of coronavirus exposures. It noted that S&P 500 P&C insurer stocks generally have outperformed in the recent stock market decline (YTD 29% vs. 51% decline for life... Read More
A bill has been introduced in the New Jersey legislature to eliminate – on a retroactive basis – the application of virus or pandemic exclusions to coronavirus / COVID-19 claims. The global virus transmission or pandemic exclusion was generally added to business interruption policies starting in 2006 and later approved by state regulators in New Jersey and other states... Read More
Well-known New Orleans restaurant, the Oceana Grill, was the first to file a business interruption insurance lawsuit against its insurer, Certain Underwriters at Lloyd’s, London (“Lloyd’s”), last week in Louisiana state court. While the complaint is lacking in some policy specifics, the issues raised suggest this may be a test case of sort for coronavirus business interruption issues generally. Oceana... Read More
Nursing home outbreaks highlight the coronavirus risks in the long-term care healthcare sector. The novel coronavirus and COVID-19 will likely implicate long-term care facilities’ insurance coverage profile in ways that are unprecedented both for the policyholders and their insurers. Long-term care facilities include nursing homes and skilled nursing facilities, assisted living facilities, and continuing care retirement communities. The insurance... Read More
Business Interruption / Event / CGL / D&O / E&O / Workers’ Compensation Business Interruption and Event coverage is frequently provided as part of a policyholder’s commercial property insurance and provides coverage for financial loss suffered due to “direct physical loss or damage” to an insured property. Contingent Business Interruption coverage insures the policyholder for financial losses resulting from a... Read More
Insurer denied business interruption claims related to a food service industry client resulting from a total-loss event. The insurer fully denied monetarily important losses related to various high-cost, regulated products. Hoke LLC was retained post-denial and within weeks completed a detailed claim investigation. Also, during this time and working with the client we implemented a different recovery strategy and... Read More
WHAT YOU NEED TO KNOW RIGHT NOW! Coronavirus and COVID-19 implicate your organization’s insurance coverage profile in ways that are unprecedented both for policyholder / insureds and their insurers. No one, including your insurers, knows how this ultimately will play out across the industry. Being aware of all your options is the only way you can maximize your insurance recovery. ... Read More
Insurer’s Settlement of Fracking Blast Case Not “Voluntary Payment” Barring Recovery from Co-Insurer The Tenth Circuit, applying Wyoming law, held that a commercial auto insurer had no duty to defend or indemnify its insured for a personal injury lawsuit arising out of a fire at a fracking site. The Tenth Circuit held that the commercial auto insurer was to be... Read More
Consent to Settle Clauses Are Not Against Public Policy and Are Enforceable The Massachusetts Supreme Court, applying Massachusetts law, upheld the trial court’s ruling and held that consent to settle clauses in professional liability policies are not against public policy and are enforceable. Thus, an insurer is not liable for its insured’s refusal to settle litigation. Homeowners Douglas Rawan and Kristen... Read More
Pieces of Rock a “Pollutant” Under Pollution Exclusion The Fifth Circuit, applying Texas law, affirmed the District Court’s finding that coverage for an unplanned discharge of rock fines, pellets produced during the course of quarry operations, is excluded by a pollution exclusion. The Fifth Circuit found that when the effects of the discharge were looked at as a whole, the... Read More
