Business interruption coverage is very valuable to many policyholders in the wake of Hurricane Michael. Florida business owners may seek coverage under their commercial insurance policies for business interruption, which indemnifies them for lost earnings and expenses if their businesses are partially or totally interrupted as a result of Hurricane Michael. Business interruption coverage is … Continue Reading
On June 12, 2018, the Office of the Commissioner of Insurance of Puerto Rico (OCI) issued Ruling Letter No. CN-2018-241-D, Appraisal Procedures for Insurance Claims for Commercial Property Related to Catastrophic Events.… Continue Reading
It’s the stuff that dreams are made of. Humphrey Bogart delivers this memorable line at the end of The Maltese Falcon, summing up the allure of the shady characters’ search for the eponymous, elusive relic. Pro-policyholder case law can be equally elusive, especially when unsettled areas of insurance law, like coverage for cyber losses, are … Continue Reading
As Hawaii’s Kilauea volcano continues to erupt, homeowners and businesses face an ongoing threat to their properties. In addition to potential property damage, businesses also have the risk of their business operations being interrupted as the result of loss to their property.… Continue Reading
Most restaurant and bar owners purchase coverage for property damage and third-party liability. But there are other important coverages that might be overlooked, or might not be purchased, that could be critical to the operation and viability of the business. Here are some basic coverages we think anyone in the restaurant industry, or readers adjusting … Continue Reading
Never meet the enemy on their own terms. This memorable line from Rudolph Mate’s classic western, The Violent Men, motivates the hero, an embattled ranch owner, as he matches wits and brute force against a ruthless, greedy land baron. The hero’s struggle reminded me of the coverage showdown in National Union Fire Ins. Co. v. TransCanada,1 … Continue Reading
Chip Merlin, Ashley Harris and I settled an Equipment Breakdown Coverage (aka Mechanical Breakdown Coverage) lawsuit in New Jersey yesterday. Chip Merlin took this picture of Ashley and me after the settlement. While the settlement is confidential, there are a number of lessons to be learned and reasons why this coverage is so important to … Continue Reading
When is a warehouse not a warehouse? When it is a temporary storage trailer parked outside a warehouse, according to the 2nd Circuit Court of Appeals in LaptopPlaza Inc. v. Starr Indemnity & Liability.1… Continue Reading
The U.S. Virgin Islands holds a special place in my family’s heart. Nothing makes my wife Ashley and I happier than a sail full of trade winds carrying us to the next secluded cove or rowdy beach bar. While most of the national media focused on Hurricane Irma’s trek toward Florida, it is now clear … Continue Reading
In an unpublished decision, the Ninth Circuit Court of Appeals recently used extrinsic evidence to interpret the meaning of “direct supplier” in the context of a commercial property loss.1 I previously blogged about this case in 9th Circuit to Interpret Meaning of “Direct Supplier” In Context of a Commercial Property Loss Claim.… Continue Reading
A recent federal district court decision in New Jersey once again highlights why policyholders need to review their insurance policies with professional insurance brokers to ensure the insurance obtained satisfies their needs. Often, insurance policies contain “additional” or “optional” coverages that, for a small amount of money, can extend insurance coverage to circumstances that would … Continue Reading
Often a homeowner’s damages are not the result of a storm event, but rather the result of defective construction. In such situations, the homeowner will often pursue an action against the general contractor or subcontractor for various claims, such as negligence or breach of implied warranty of habitability. Ultimately, the question becomes whether the contractor … Continue Reading
In unpublished decision, the Ninth Circuit Court of Appeals recently denied an accounting firm’s appeal relating to a claim for coverage triggered by an email scam that caused the firm to mistakenly send wire transfers of client funds to fraudsters.… Continue Reading
When a catastrophe occurs and a golf course sustains direct physical loss or damage, there may also be an associated loss of use and interruption to its business. As with any loss, when analyzing coverage, the first thing is to make sure that the property is listed as a covered premises in the policy.… Continue Reading
Business interruption coverage provides protection against loss of income when a business suffers property damage from an insured peril (e.g., fire, water loss) that interrupts the operation of the business.1 A typical business interruption policy form provides that the insurer will pay the actual loss of business income the insured sustains during the necessary suspension … Continue Reading
In addition to covering property damage, most first-party commercial insurance policies offer business interruption coverage. Business interruption coverage typically has two different built in coverages: business income and extra expense. Both are intended to assist businesses in the event a covered peril damages business property and impacts business operations.… Continue Reading
Whether construction defects are occurrences under Commercial General Liability (“CGL”) insurance policies is an issue that has been highly litigated in recent years. A review of cases from various states discloses that courts have been divided both in the way they decide and analyze this issue.… Continue Reading
Whether defective workmanship is an occurrence in a CGL policy was recently addressed by the Eighth Circuit Court of Appeals in Decker Plastics, Inc. v. West Bend Mutual Insurance Company.1… Continue Reading
As most of you know, there is a spreading concern about the presence of the Zika virus in South Florida. In fact, the Centers for Disease Control and Prevention has issued travel warnings pertaining to the regions where the Zika virus has been confirmed. The first CDC travel advisory related to South Florida advised pregnant … Continue Reading
New Jersey has joined a growing number of jurisdictions in ruling that damages from a subcontractor’s faulty workmanship may trigger coverage under a Developer/General Contractor’s Commercial General Liability (“CGL”) policy. On August 4, 2016, the New Jersey Supreme Court rendered a unanimous decision affirming the Appellate Division’s holding that consequential damages stemming from a subcontractor’s … Continue Reading
Commercial property insurance policies often include damages sustained by a “direct supplier.” As an example, an insured that sells motorcycles, might rely on a particular motor cycle part supplier to provide parts used in their motorcycles. If the motorcycle part supplier sustains a loss, it could impact the insured’s business.… Continue Reading
When calculating a business income loss, it is important to look at the company as a whole and to look at individual segments of the business. Under a standard loss calculation where the projected “but for” revenues were considered by deducting the revenues from sales of substitute products and applying a profit factor to the … Continue Reading
When Hurricanes hit, residential and commercial property are commonly considered when you think of the insurance losses. But in coastal states hurricanes can also have a devastating impact on commercial and recreational marine losses. As with residential and commercial property, you need to be sure you review and understand your boat’s insurance policy. It is … Continue Reading
Farm stand fresh vegetables and sweet and savory baked goods can make any day better. Verrill Farms had been in the produce and bakery industry in Concord, Massachusetts, for decades but before you could buy deli sandwiches or take home fresh heirloom tomatoes, Verrill Farms was a daily farm started in 1918. The farm was … Continue Reading
