As we and our sister blogs have previously reported (see here, here, and here), the New York State Department of Financial Services enacted Cybsersecurity Requirements for Financial Services Companies, 23 NYCRR 500, on March 1, 2017. The first certification of compliance with this regulation is due today, February 15, 2018.
In an article appearing in Law360, Hunton & Williams LLP’s insurance coverage practice group head, Walter Andrews, weighs in on the Florida Supreme Court’s recent opinion in Altman Contractors, Inc. v. Crum and Forster Specialty Insurance Co. As I discussed in my previous blog post on the Altman Contractors case, available here, the Florida Supreme Court held that a Chapter 558 notice of construction defect constitutes a “alternative dispute resolution proceeding” under the definition of “suit” in a commercial general liability (“CGL”) policy so as to possibly trigger the insurer’s duty to defend. There, the policy defined “suit” as including “[a]ny other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent.”
Last week, the Florida Supreme Court held that a Chapter 558 notice of construction defect constitutes a “suit” under a commercial general liability (“CGL”) policy sufficient to trigger the insurer’s duty to defend. The opinion can be found here, and our prior blog posts on this case here and here.
In today’s interconnected society, a cyber breach is inevitable. For energy companies in particular, the threat is even more acute as cyber security improvements lag behind the rapid digitalization in oil and gas operations. One recent cyber security report stated that 68% of respondents reported that their organization experienced at least one cyber compromise. And, just last week, it was disclosed that hackers used sophisticated malware, called “Triton,” to take control of a key safety device at a power plant in Saudi Arabia. Find our analysis of this latest attack on the blog here .
Following the devastation of Hurricane Irma, the Florida Office of Insurance Regulation has entered an emergency order regarding insurance procedures for residential property policies to assist policyholders and streamline the claims process. The insurance commissioner’s order provides standardized requirements for claims reporting, grace periods for payment of premiums and performance of other duties by policyholders, and temporary postponement of cancellations and non-renewals. These include:
In the wake of the continued aftermath from Hurricane Irma, Georgia Tech and Central Florida have decided to cancel their game, scheduled for this upcoming Saturday in Orlando. The cancellation joins a long and growing list of games cancelled due to hurricanes in recent weeks. Last weekend alone, Florida State and Louisiana Monroe; Miami and Arkansas State; South Florida and Connecticut; and Florida and Northern Colorado all had to scratch their contests due to the impending arrival of Hurricane Irma. The week before, Hurricane Harvey forced UTSA and Houston to cancel their game, while BYU and LSU had to relocate their game from Houston to New Orleans.
It has been almost a week since Hurricane Harvey came barreling down the Texas coastline as a Category-4 storm. Since that time, parts of Texas and Louisiana have been inundated with flood waters as Harvey continues to wreak havoc. Despite the fact that many of those affected have been unable to reach their homes or business to fully assess the damage because of road closures and flood waters, insureds whose businesses or homes were in the storm’s path should notify their insurers in writing now. The initial written notice should include the following information:
- Name and contact information for the insured;
- The location of the loss;
- The date and time of the loss (to the extent known); and
- A brief description of the loss.
As Texas and other Gulf coast areas make final storm preparations, now is a good time to gather insurance information and policies. Hunton & Williams insurance attorneys, Michael Levine and Andrea DeField provide important information in this linked Client Alert concerning insurance issues that are likely to arise in the storm’s wake, including potentially applicable coverages that could go overlooked without proper guidance.
For more information, please visit our Hurricane Insurance Recovery and Advisory center.
Liability insurance policies generally have an exclusion barring coverage for claims brought by the insured’s own employees. Many times, especially in the hospitality industry, a liability insurance policy provides coverage for various different companies. A common question is whether claims brought by an employee of one insured against another insured are covered under such a policy.
In 2015 and 2016, we discussed certain provisions of the then drafts of the Restatement of the Law, Liability insurance, including the Duty to Cooperate, here, and Duty to Defend, here and here. In late May 2017, the American Law Institute met to approve the Proposed Final Draft—the culmination of over seven years of work on this project. Not surprisingly, many of the issues discussed in the Restatement have been hotly contested by insurers. While in many instances, the reporters simply opted for the majority rule, in a few instances, the Restatement may seek to move the law on key issues to align the law and the incentives underlying insurance and claims-handling. In a recent article for Risk Management Magazine, Lorie Masters, Syed Ahmad, and I address some of the most hotly debated sections of the proposed Restatement, including: policy interpretation principles, such as when a term is deemed ambiguous; the standard for determining the insurer’s duty to defend; the insurer’s duty to make reasonable settlement decisions; and the allocation of liability in long-tail environmental claims. The article can be found here. We will also be speaking at the upcoming Florida RIMS Conference in Naples, Florida on this subject on July 28th. Please see the Florida RIMS website for more information on that conference.
The vote on the final draft has been pushed to the American Law Institute’s next annual meeting in May 2018. In the meantime, policyholders may consider submitting comments on sections of interest and can look to the current Proposed Final Draft as guidance on what the law may be should they encounter a coverage dispute with their liability insurer.