Because of the potential exposure associated with wildfires, many insurers have attempted to withdraw from the property coverage market in various states. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss the challenges businesses and individuals face in obtaining wildfire insurance coverage, and the regulatory scheme that is intended to help them secure adequate coverage.
Continue Reading Wildfire Insurance Coverage Series, Part 6: Ensuring Availability of Insurance and State Regulations

Insurance policies provide different levels of insurance coverage and even if the amount purchased was adequate at one time, developments over time (e.g., inflation, upgrades, regulatory changes and surge pricing) may leave the policyholder underinsured. In this post in the Blog’s Wildfire Insurance Coverage Series, we emphasize the need for policyholders to take a close look at the policy’s terms to select the right type and amount of coverage for a potential loss.
Continue Reading Wildfire Insurance Coverage Series, Part 5: Valuation of Loss, Sublimits, and Amount of Potential Recovery

Business loss is not limited to fire or smoke damage to its own property – it often arises from damage to the supply chain. In this post in the Blog’s Wildfire Insurance Coverage Series, we look at what coverage may exist when wildfire damages an entity’s supply chain.
In many instances, while the insured property does not sustain fire or smoke damage, wildfires can wreak havoc on the business supply chain. For some, contingent business interruption coverage may be a solution. Contingent business interruption insurance extends coverage for the loss of prospective earnings because of an interruption in the insured’s supply chain that is caused by damage to property that the insured neither owns nor operates. Typically, the property covered is of a supplier or customer. For example, in 2000, Ericsson Telecom A.B., a mobile phone manufacturer, presented a substantial contingent business interruption claim based on a fire that damaged a Royal Philips Electronics semiconductor plant. Royal Philips supplied critical components for Ericsson’s mobile phones. The fire caused Royal Philips to close its plant, halting Ericsson’s phone production for six weeks, resulting in substantial losses.

Continue Reading Wildfire Insurance Coverage Series, Part 4: Coverage for Supply Chain Related Losses

Even when claims are within the scope of coverage, insurers often rely on exclusions in an attempt to avoid coverage for wildfire claims. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss the interplay between coverage grants and exclusions, and the “anti-concurrent cause” provision.
Continue Reading Wildfire Insurance Coverage Series, Part 3: Standard Form Policy Exclusions

For many policyholders, smoke emanating from wildfire causes as much if not more damage than the fire itself.  In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss damages caused by smoke emanating from wildfires.
Continue Reading Wildfire Insurance Coverage Series, Part 2: Coverage for Smoke-Related Damages

Wildfires destroy millions of acres a year in the United States, spewing smoke across much of the nation. The cost of damage alone over the past several years soars into the hundreds of billions. As wildfires continue to spread, particularly as we enter wildfire season, policyholders’ claims will rise and with that, so too will wildfire insurance coverage issues. Many believe that when a fire damages their property and/or interrupts their business operations, a claim gets submitted and is automatically paid; sadly, this is often not the case.
In a seven-part series delving into issues relating to wildfire insurance coverage, the Hunton insurance group provides a comprehensive understanding of the types of policies that may be available, legal and factual issues that may arise, and steps policyholders can take – both in advance and during the claims process – to maximize recovery.

Continue Reading Hunton Insurance Group Advises Policyholders on Issues That Arise With Wildfire Claims and Coverage – A Seven-Part Wildfire Insurance Coverage Series

With the circumstances in Ukraine intensifying and companies either shutting down or suspending operations in the region, the sparingly used war exclusion will become more relevant as policyholders seek to recover losses. The economic effects will be broadly felt. Some companies may have to close operations entirely, some partially, and others may have their supply chains severely disrupted. This is compounded by the worldwide risk of cyber-incidents. The US government has been adamantly warning companies to protect themselves against cyberattacks. The impact on policyholders, however, may take different forms, potentially implicating their business interruption, contingent business interruption, cyber, shipping and cargo, and political risk insurance coverages. These are only a few examples. Other coverages could be implicated.
Continue Reading The War Exclusion Will Be a Leading Issue in the Months and Years Ahead

Most insurance policies include a period of limitation provision that limits how long policyholders have to sue their insurers for coverage under the policy.  But those periods of limitation can be traps for the unwary.  As with many insurance provisions, different states construe the same language differently.  States not only start the clock at different times, some states pause the clock while the insurer considers whether it will provide coverage.
Continue Reading Running Out the Clock: The Period of Limitation in COVID-19 Insurance Lawsuits May Soon Come to an End

Recently, Florida’s First District Court of Appeals handed down a victory for policyholders when it affirmed a Circuit Court’s order compelling an insurer to produce its underwriting manual in a breach of contract action. In People’s Trust Insurance Co. v. Foster, No. 1D21-845 (Fla. 1st DCA Jan. 26, 2022), the policyholder, Mr. Foster, filed a breach of contract claim against his insurer, People’s Trust, after People’s Trust failed to pay his insurance claim for damage caused to Mr. Foster’s home due to a leaking water pipe. People’s Trust denied Foster’s claim because “Foster’s pipe damage predated the policy’s inception.”
Continue Reading Florida Appellate Courts Holds Underwriting Manuals are Discoverable in Breach of Contract Case

An Ohio appellate court held last month that a cyberattack triggered coverage under a commercial property insurance policy in the case EMOI Services, LLC v. Owners Insurance Company, No. 29128, 2021 WL 5144828 (Ohio Ct. App. Nov. 5, 2021).  This is good news for policyholders in light of widespread cyberattacks over the last two years, and rising premiums in today’s cyber insurance markets. The decision also has wider implications, including in suits seeking coverage for losses caused by COVID-19 under property insurance policies.
Continue Reading Ohio Appellate Court Upholds Coverage for Cyberattacks Under Commercial Property Policies