Tag Archives: Insurance General

Hurricane Ian and Hurricane Nicole: Answering questions policyholders frequently ask (or should ask) to ensure maximum recovery

By Jessica E. Gopiao and Matthew B. Weaver on Posted in Business interruption, Environmental, Insurance Coverage, Insurance General, Property Damage & Business Interruption
At $40-70 billion in estimated insured losses, Hurricane Ian is the nation’s second most expensive natural disaster for the insurance industry. Less than two months later, Hurricane Nicole made landfall in Florida. Securing insurance coverage for these losses will be an important part of rebuilding and recovery. Recently, Reed Smith’s insurance coverage lawyers hosted a … Continue Reading

Key considerations for companies in procuring or renewing D&O coverage

By Miranda Jannuzzi and Andy Moss on Posted in D&O, E&O, Professional Liability, Insurance Coverage, Insurance General
Directors’ and Officers’ liability (“D&O”) insurance offers key protections to a company’s board members and management by serving as a financial backstop for their indemnification rights as well as their personal assets in the event directors or officers are the subject of claims or investigations based on their service to the company.  D&O insurance also … Continue Reading

A tightening cyber insurance market: War exclusions in the wake of Merck v. Ace

By David Cummings, Andrew Barrios and Andy Moss on Posted in Cyberliability, Insurance Coverage, Insurance General
As cyber risks continue to grow and evolve, the cyber insurance market is increasingly likely to take steps to limit its risk profile, often in the form of new or broadened policy exclusions. Cyber insurers are continuously evaluating, amending, and restructuring their insurance products (including their capacity, and, importantly, their pricing) to reflect what they … Continue Reading

Pet insurance: Proposed model rules may afford better protection to paw-licyholders

By Lauren Gubricky and John Vishneski on Posted in Insurance Coverage, Insurance General
Pet insurance is becoming a popular choice for pet owners, fueled by an increase in pet ownership during the pandemic, advancements in veterinary medicine, and a growing recognition that pets (or “companion animals”) are members of the family. Although the pet insurance industry is accelerating at a record pace, many owners have been irritated by … Continue Reading

Two state Supreme Courts reach commercially reasonable results by permitting post-loss assignments  

By Lisa Szymanski and Nicholas Rodriguez on Posted in Commercial General Liability, Insurance Coverage, Insurance General, Property Damage & Business Interruption
The well-established principle that a policyholder may assign benefits under an insurance policy following a loss was recently reaffirmed by state supreme courts in two jurisdictions:  South Carolina and Puerto Rico. These two jurisdictions join the majority rule, which holds that assignments following an insured loss are permissible because they do not change the scope … Continue Reading

War exclusion: changing battlefields and coverage implications

By Stephanie Gee and Cristina Shea on Posted in Cyberliability, Insurance Coverage, Insurance General
In early February of this year, we wrote about a New Jersey court’s recent decision in Merck & Co., Inc. et al. v. Ace American Ins. Co. et al., Case No. UNN-L-2682-18 (N.J. Sup. Ct.) regarding the applicability of a “war exclusion” for acts of cyberwarfare.  Shortly thereafter, the Russian invasion of Ukraine once again … Continue Reading

Florida: the time to move for attorney’s fees post-appraisal

By Wesley Butensky and Christopher Kuleba on Posted in Insurance Coverage, Insurance General, Property Damage & Business Interruption
Most residential property policies provide for an “appraisal” as an alternative dispute resolution mechanism when the insurer concedes coverage for a loss in whole or part, but the amount of the loss is disputed. The resulting appraisal award is binding on the parties absent certain limited grounds for challenging the award or the insurer’s obligation … Continue Reading

Policyholders grapple with strategies for responding to New York’s new insurance disclosure law

By Ann Kramer, Eric Toepfer and Noel Paul on Posted in Insurance Coverage, Insurance General
Insurance disclosure requirements have just become far more complex and onerous for parties that face litigation in New York state courts. In our January article (updated in February), we discussed the particulars of New York’s new Comprehensive Insurance Disclosure Act as it stood when the legislation was signed into law in late December 2021 and as … Continue Reading

Recent opinions provide support for insureds seeking coverage for BIPA claims

By John Vishneski and Andrew Barrios on Posted in Commercial General Liability, Employment Practices Liability, Insurance Coverage, Insurance General
Since the Illinois Supreme Court’s ruling that class actions alleging violations of the Illinois Biometric Information Privacy Act (“BIPA”) trigger general liability coverage, the focus of BIPA coverage litigation has shifted to the applicability of three exclusions often found in general liability policies: (1) the Employment Related Practices exclusion, (2) the Violation of Statutes exclusion, … Continue Reading

D&O insurance to counter ESG litigation – new issues for insurers and policyholders

By Kya Coletta and Benjamin Fliegel on Posted in D&O, E&O, Professional Liability, Environmental, Insurance Coverage, Insurance General
Strong environmental, social and corporate governance (ESG) business policies are critical to address the fluctuating, unprecedented risks in this changing climate. Any company planning to expand and thrive in the next few decades must evaluate its collective conscientiousness for social and environmental factors, including preparing for the social and market upheavals resulting from greenhouse gas … Continue Reading

“Illinois’ ‘targeted tender’ rule – a powerful strategy for insureds to select and deselect triggered policies to maximize coverage

By Evan Knott and Andrew Barrios on Posted in Insurance Coverage, Insurance General
Businesses with liability insurance coverage governed by Illinois law should be mindful to take advantage of Illinois’ “targeted tender” rule, which provides insureds a unique strategy for maximizing insurance recoveries for claims triggering multiple different policies. This rule recognizes an insured’s right to “target tender” one or more concurrent insurance policies from a group of … Continue Reading

Responding to a cyber-related business interruption: best practices

By Brian Himmel and Andy Moss on Posted in Business interruption, Cyberliability, Insurance Coverage, Insurance General
One of the top issues facing business today is the risk of business interruption resulting from a cyber-related attack. Regardless of the form of attack – ransomware, denial of service, data theft, or other form of malware – any resulting failure of an organization’s network systems can have severe consequences, financial and otherwise. These may … Continue Reading

“Mind the gap”: Guarding against unintended gaps in coverages

By Max Louik, Dominic Rupprecht and Andrew Kintner on Posted in Employment Practices Liability, Insurance Coverage, Insurance General
As a recent decision from the Eleventh Circuit highlights, when purchasing insurance for workplace bodily injuries, policyholders need to be mindful of how all of their policies fit together, keeping an eye out for policy language that insurers may exploit to manufacture unexpected and unintended gaps in coverage. Covering the workplace Typically, employers seek three … Continue Reading

Lessons from Merck v. Ace: A cyberattack does not amount to an ‘act of war’

By David Cummings and Andy Moss on Posted in Cyberliability, Insurance Coverage, Insurance General
Cyberattacks continue to grow in sophistication and frequency, with attackers targeting businesses of all industries and sizes with seeming impunity. In the wake of this ongoing pervasive and indiscriminate threat, corporate risk departments are taking measures to assess cyber risks and update network security and protocol in hopes of staying one step ahead of potential … Continue Reading

“Occurrences” in COVID-19 business interruption litigation

By Matthew B. Weaver on Posted in Business interruption, COVID-19, Insurance Coverage, Insurance General
Nearly two years into the COVID-19 pandemic, the battles over threshold business interruption coverage issues like the presence of physical loss or damage, causation, and the applicability of policy exclusions continue to rage.  Results have been mixed, with insurers notching wins in federal courts, and policyholders faring better in state courts and in certain jurisdictions. … Continue Reading

D&O insurance for the cannabis industry

By Jake Ziering and Marc Hauser on Posted in Cannabis, D&O, E&O, Professional Liability, Insurance Coverage, Insurance General
Cannabis and the D&O market in 2022 In the early days of 2022, cannabis companies and investors have cause for guarded optimism. The once very real specter of federal intervention in the burgeoning industry seems to have faded into the background as successive presidential administrations have declined to push the issue, and now, all but … Continue Reading

NY’s new comprehensive insurance disclosure law is in flux

By Ann Kramer on Posted in Insurance Coverage, Insurance General
On December 31, New York’s Governor Kathy Hochul signed into law a change to the insurance disclosure requirements that applies to all civil cases filed in New York state’s courts. CPLR section 3101(f).  The new statute by its terms applies to both pending cases and new filings, with continuing disclosure obligations through appeals, and places … Continue Reading

D&O insurance basics (Part 2)

By Andy Moss and Carolyn Rosenberg on Posted in Commercial General Liability, D&O, E&O, Professional Liability, Insurance Coverage, Insurance General
Directors’ and officers’ liability (D&O) insurance protects the personal assets of corporate directors and officers in the event of a lawsuit or other “claim” made against them for, among other things, an alleged breach of their duties in managing the organization.  D&O insurance directly covers individual directors and officers for their defense costs, judgments against … Continue Reading

D&O insurance basics (Part 1)

By Carolyn Rosenberg and Andy Moss on Posted in D&O, E&O, Professional Liability, Insurance Coverage, Insurance General, Uncategorized
This is the first of two posts discussing several major aspects of directors’ and officers’ liability (“D&O”) insurance coverage.  Companies approaching a policy renewal deadline, looking to place D&O insurance for the first time, considering increasing the size or structure of an existing D&O insurance program, or otherwise evaluating their overall risk management strategy may … Continue Reading

COVID-19 event cancellation insurance – good news and bad news

By Mark Pring, Elizabeth F. Vieyra and Anthony B. Crawford on Posted in Commercial General Liability, Insurance Coverage, Insurance General
A concert promoter cancels a sold-out show of a world-renowned recording artist, reimbursing millions of dollars in ticket sales as a result.  If the reason for the cancellation was COVID-19, does insurance cover that? Event Cancellation Insurance Basics Event cancellation insurance generally provides coverage only when there has been a triggering event under the policy.  … Continue Reading

Ten important steps a cannabusiness should consider when purchasing insurance

By Mike Sampson on Posted in Insurance Coverage, Insurance General
Purchasing insurance for a cannabusiness can feel like a daunting task, but it does not have to be one. In addition to grappling with many of the same issues and questions that any business confronts when seeking insurance, a cannabusiness encounters certain additional, unique challenges due to the industry in which it operates. That is … Continue Reading

United States Department of Justice Announces “Best Practices” for Addressing Cyber Attacks

By Melissa Meth on Posted in Cyberliability, Insurance Coverage, Insurance General
In light of the growing concern over cybersecurity, the United Stated Department of Justice (“DOJ”) issued guidance last week on how to prepare for and respond to cyber attacks.  Taking lessons learned by federal prosecutors while handling cyber investigations, and input from private sector companies that have managed cyber incidents, the guidance contains a step-by-step guide … Continue Reading

Texas Supreme Court Issues Long Awaited Opinion on Additional Insured Coverage

By John Shugrue, Jennifer J. Dotson and Kevin Dreher on Posted in Commercial General Liability, Insurance Coverage, Insurance General
On February 13, 2015, the Texas Supreme Court, in response to certified questions from the Fifth Circuit, held that BP was only entitled to limited coverage for Macondo related claims as an Additional Insured under Transocean's insurance policies. Specifically, the court held the Transocean insurance contracts included the language required to necessitate "consulting the drilling contract" to determine BP's status as an additional insured.… Continue Reading
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