Bucking Trend, Courts Find Potential Coverage for COVID-Related Business Interruption Loss
Cooley Insure
by Drew Wegner
1y ago
Since June 2022, policyholders have grown cautiously optimistic as two state appellate courts have ruled in favor of policyholders seeking coverage for business interruption loss stemming from COVID-19. As has been well documented since the pandemic began, courts have largely declined to find coverage for such loss, often based on the assumption that COVID-related closures do not satisfy the “physical loss or damage” requirement found in most policies. In mid-June, however, a Louisiana appellate court found the presence of coronavirus on an insured’s premises caused covered “physical loss or d ..read more
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Court of Appeal reaffirms law on aggregation of claims pursuant to a “cause” based wording
Cooley Insure
by Sam Tacey
2y ago
In Spire Healthcare v Royal & Sun Alliance Insurance Ltd [2022] EWCA Civ 17, the Court of Appeal reversed the first instance decision of Judge Pelling QC holding that the two sets of claims in question had in common a unifying factor, such that they should be aggregated for the purposes of the aggregation clause in the policy. The net effect of this decision was that the insured’s claim was limited to the £10m per claim limit of the policy (rather than the £20m aggregate limit). The case concerned claims made against Spire Healthcare in respect of the conduct of a consultant breast surgeon ..read more
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Delaware Expands Use of Directors and Officers Captive Insurance
Cooley Insure
by Alexander Traum
2y ago
On February 7, 2022, Delaware Governor John Carney signed into law a bill that amends the Delaware General Corporation Law (DGCL) to expressly allow the use of captive insurance companies to fund a Delaware corporation’s directors and officers insurance coverage. The insurance business is historically cyclical in nature, and we’re currently experiencing a particularly “hard” D&O insurance market, in which companies seeking D&O coverage face capacity and pricing challenges. This hardening of the market is especially pronounced for companies engaged in new and innovative sectors such as ..read more
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Fair Presentation, Moral Hazard and Material Circumstances
Cooley Insure
by Cooley
2y ago
In the recent decision in Berkshire Assets (West London) Ltd v AXA Insurance UK Plc [2021] EWHC 2689 (Comm), Lionel Persey QC, sitting as a Judge of the High Court, gave the first English decision on the insured’s duty of fair presentation as set out in the Insurance Act 2015 (the ‘Insurance Act’). The decision addresses two fundamental principles arising from the duty, namely what constitutes a material circumstance and whether the failure to disclose induced AXA to write the risk i.e would AXA in fact have declined the risk had the material circumstance been disclosed? The decision addresses ..read more
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Warranty & Indemnity Insurance in the COVID Era
Cooley Insure
by Mark Everiss
2y ago
Mark Everiss has recently published an article in Zeitschrift für Versicherungswesen on Warranty & Indemnity insurance in the COVID Era. It can be read here ..read more
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Court of Appeal Upholds Decision on Inducement
Cooley Insure
by Mark Everiss
2y ago
The Court of Appeal has, in its recent judgment in Zurich Insurance Plc v Niramax Group Ltd [2021] EWCA Civ 590, addressed important issues of non-disclosure and inducement that were addressed at first instance in the Commercial Court by Cockerill J in Niramax Group Ltd v Zurich Insurance Plc [2020] EWHC 535 (Comm) which we blogged here. The dispute relates to a claim brought by Niramax Group Ltd (“Niramax”) against Zurich Insurance plc (“Zurich”) challenging Zurich’s failure to pay out on a claim for fire damage to a recycling facility. Niramax, a waste management operator, held insurance pol ..read more
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Supply Chain Finance and Trade Credit Insurance in Spotlight
Cooley Insure
by Cooley
3y ago
As struggling companies continue to look for liquidity amid the COVID-19 pandemic, many have turned to supply chain financing (SCF) solutions to shore up their balance sheets and to mitigate risk. SCF is a financial transaction in which a bank or third party provides funding to pay a company’s supplier of goods and services. This type of transaction has the potential to benefit all parties: the supplier is paid earlier – but less – than it would otherwise be paid; the company benefits from extended payment terms and reduced working capital requirements; and the bank or third party pockets the ..read more
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Using a Professional Employer Organization? Check for Employment Practices Liability Insurance
Cooley Insure
by Cooley
3y ago
Professional employer organizations provide human resources solutions for small and mid-size businesses. In the US, PEOs serve more than 175,000 small and mid-sized businesses, which represents 15% of all US employers with 10 to 99 employees, according to the National Association of Professional Employer Organizations. In addition to handling human resources matters, payroll and employee benefits, some PEOs offer employment practices liability insurance – which provides their business clients with liability and defense coverage for claims brought by employees for “wrongful employment acts,” su ..read more
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Bipartisan Bill Would Provide Federal Safe Harbor for Insurance for the Cannabis Industry
Cooley Insure
by Cooley
3y ago
On March 18, US Senators Robert Menendez, D-NJ, Rand Paul, R-KY, and Jeffrey Merkley, R-KY, introduced legislation meant to encourage insurer penetration in the cannabis industry. Under the Clarifying Law Around Insurance of Marijuana Act, or CLAIM Act, federal law would provide certain protections and assurances to insurers that transact with cannabis-related businesses. Despite being legal for medicinal or adult recreational purposes in many states, at the federal level, cannabis is a Schedule 1 substance under the Controlled Substances Act of 1970. Therefore, under federal law, it is genera ..read more
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Improving Cyber Insurance Practice Should Be a Company’s Priority
Cooley Insure
by Alexander Traum
3y ago
The New York State Department of Financial Services recently issued guidance for New York-regulated property and casualty insurers to effectively manage the cyber insurance risk present in their insurance portfolio. The DFS’ guidance signals an effort to reduce overall volatility in the cyber insurance market, which has been compounded by the recent proliferation of cyberattacks and by insurers’ widely varying approaches to measuring each policyholder’s cyber risk profile. Although the DFS’ Cyber Insurance Risk Framework applies primarily to New York-regulated property and casualty insurers th ..read more
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