The Six E’s

  1. Extent
  2. Experienced
  3. Excluded
  4. Extra
  5. Effort
  6. Enough

The essence of the Six E’s is that insureds may receive benefits to the Extent of the loss Experienced, not resulting from Excluded causes, and also for Extra expenses incurred, provided that Effort is made to reduce the loss and there is Enough insurance purchased.
Continue Reading The First Two Elements of The Six E’s of Business Interruption Coverage—Extent and Experience

Why do commercial insurance lawyers only study insurance cases? I was thinking about this while debating an excellent, but issue ignorant, insurance company lawyer about a particular coverage issue which his client promotes differently at the point of sale versus what he was arguing about the coverage. Similarly, my blog discussion of the Six P’s and Six E’s has nothing to do with insurance coverage cases, but the theory of modern business interruption. Understand the theory, how the policy should be working, and the law should catch up later and even learn from the theory.
Continue Reading Commercial Insurance Coverage Attorneys Should Learn the Six P’s—A Discussion of Productivity, Period and Profits

The Six P’s and Six E’s form a traditional framework for understanding business interruption analysis, as noted in The Six P’s and Six E’s of Business Interruption Coverage. Today, I am going to discuss the second and third P— “Property” and “Perils.”
Continue Reading What Are the Property and Perils Aspects of Business Interruption Analysis?

Business interruption issues, questions, and debates seem to be the current rage regarding property insurance coverage. There are some excellent discussions and analysis from a number of lawyers who have been involved with this field for quite some time. From reading a number of recent lawsuits, a lot of lawyers involved with some of these lawsuits have no idea what they are doing. I bet a number of company, independent, and public adjusters agree with me.
Continue Reading Business Interruption Insurance Basics and the Period to Be Measured— A Discussion of Business Interruption During Tuesdays At 2 With Chip Merlin

For anyone following the daily flood of developments regarding business interruption and COVID-19, insurance commentator Bill Wilson is a good source to read and follow. Astutely, his website is www.insurancecommentary.com. Mr. Wilson’s newest post, It’s Not Just About ‘Direct Physical Damage’,1 raises interesting new arguments about Civil Authority claims – a sub-coverage within business interruption. He breaks down some factors that lean both for and against civil authority coverage for COVID-19 claims based on some interesting historical research.
Continue Reading Bill Wilson’s New Commentary on ISO Civil Authority policies and Covid-19 Provides Great Fodder for Debate

With COVID-19 business closures, legislatures across the country have been grappling with new questions, including what protections may be afforded by business income insurance. As of late, members of legislatures in states like New York1 and Pennsylvania2 have all proposed legislation in favor of affording coverage for claims that might otherwise be excluded. While these bills have not passed, they may offer some indication about what legal issues could arise in the future.3
Continue Reading State Legislatures Aim to Afford COVID-19 Coverage

A number of federal class action cases involving businesses shut down from the COVID-19 crisis have resulted in requests for federal cases to be consolidated to one court The Judicial Panel on Multidistrict Litigation will decide if that will happen.
Continue Reading What is Multidistrict Litigation (MDL) and Will It Impact Virus Business Income Claims?

Business interruption can be a hot button topic among business owners and carriers alike. The purpose of business interruption insurance is to protect business owners for the loss that occurs for not being able to use a specified location.1 Questions often arise on how to compute the loss of revenue when a business’s operations fully close due to a covered loss. However, what can a business do to better protect itself if its operations are only partially interrupted?
Continue Reading Partial Business Shutdown: An Age-Old Lesson in Carefully Reading the Policy

When I saw my colleague Mike Pappitoninio, who sponsors Mass Torts Made Perfect, started advertising for what must have been his first ever seminar on the intricacies of a property insurance policy, I knew it was only a matter of time before the Mass Tort Lawyers would start to file their lawsuits and ask the Federal Panel on Multidistrict Litigation to consolidate the litigation.
Continue Reading Coronavirus Insurance Coverage Update April 22–Here Come The Mass Tort Lawyers!