The United Kingdom Supreme Court (UKSC) handed down its judgment on 15 January 2021 in The Financial Conduct Authority v. Arch Insurance (UK) Limited and Others. This test case was brought by the FCA on behalf of SME business interruption (BI) policyholders who have suffered financial losses as a result of COVID-19. The High Court … Continue Reading
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
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
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
Reed Smith Insurance Recovery partners John Shugrue, John Ellison, Amber Finch, Richard Lewis, and Matthew Weaver offer discussion and analysis on key issues relevant to businesses seeking, or evaluating whether to seek, coverage for COVID-19 losses. This webinar is available on demand and you can register here. Here’s a brief summary of the topics addressed in … Continue Reading
Companies are facing operational and logistical challenges in recovering from the widespread destruction caused by these natural disasters. They will be looking to property damage and business interruption insurance to get them back on track. The time and cost to return to normal operations could be unusually long given the widespread destruction and the lack … Continue Reading
Hurricanes Harvey and Irma have brought widespread destruction and extraordinary damage to property that will require a long recovery. Individuals will need substantial relief to replace and repair homes and personal property. This blog provides guidance about insurance and governmental resources available to assist individuals after these Hurricanes and discusses common issues and questions arising … Continue Reading
A number of insurance companies have recently entered into reinsurance agreements with National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc. When this occurs - and the arrangements do not require the consent of policyholders - the policyholders unexpectedly find themselves involved with NICO and/or its "affiliated claims adjuster," Resolute Management, Inc. ("Resolute"). But, what happens when a policyholder disagrees with NICO's and/or Resolute's approach to adjusting, defending, or resolving claims?… Continue Reading
The Ebola crisis has raised numerous issues worldwide. Many of the concerns sparked by the crisis - particularly in the insurance coverage context - are not unique to that disease, however. For example, coverage concerns relating to Ebola-related claims would be similar to those for many other disease-related claims. Many different types of insurance policies, including general liability policies, could be implicated by such claims.… Continue Reading
While policyholders frequently negotiate the terms and conditions of primary insurance, it is somewhat less common for policyholders to give the same attention to the language in their excess coverage. Excess policies which state that coverage attaches only after the underlying insurer pays out its full-limits of liability can frustrate policyholders attempting to resolve a coverage dispute with an underlying insurer. Policy wording is critical - as demonstrated in a recent Texas appellate court.… Continue Reading
Every day, there is a new story about Ebola in the media. While some commentators suggest that the threat of Ebola in the United States is overblown - and we hope they are right - now is still the time for all businesses to review their insurance policies to understand what insurance coverage, if any, they may have available should an Ebola-related liability and/or loss occur.… Continue Reading
