On May 26, 2020, a California Court of Appeals (4th District) issued its decision in Mosley et al. v. Pacific Specialty Ins. Co.  The case arose in the context of a marijuana-growing tenant who rerouted a home’s electrical system and caused an electrical fire.  The issue was whether the homeowner’s policy covered the loss.  The trial court granted the insurer’s motion for summary judgment and, in a divided decision, the Court of Appeals reversed in part.

Continue Reading California Appellate Court Holds “Minimal Causal Connection” Satisfies Causation Requirement in All Risk Policies

Earlier last week, Hunton insurance partner Michael Levine spoke with Business Insurance about the mounting concerns over insuring Coronavirus-related business income and supply chain losses.  As of today, almost 80,000 cases have been reported world-wide and more than 2,250 are confirmed to have died as a result of the disease.  Companies across the globe have been impacted, with loss of materials, markets and distribution representing a common thread among reported losses and disruptions.  But these “supply chain” losses may be compensable through insurance.  Policyholders will be forced to evaluate complex policy provisions and endorsements to ascertain whether their insurance program should respond.  In particular, policyholders must determine whether their policy wording requires some element of physical loss or damage to property to trigger business interruption or contingent business interruption coverage.  Even where such a requirement exists, however, some policies are written so that loss of use of property is sufficient to implicate coverage.  Likewise, questions exist concerning contamination to property, and whether that too may constitute physical loss, damage or loss of use.  For these reasons, among others, Levine explained to Business Insurance that “contingent business interruption . . . is going to be one of the battlegrounds, if not the main battleground, particularly in the supply chain area.” Levine further noted that claims could be complicated by the physical damage requirement.

Continue Reading Hunton Insurance Partner Michael Levine Discusses Coronavirus Supply Chain Loss Claims with Business Insurance

A Maryland federal court recently awarded summary judgment to National Ink and Stitch, finding coverage for a cyber-attack under a non-cyber insurance policy after the insured’s server and networked computer system were damaged as a result of a ransomware attack.  We discussed the significance of the decision in a January 27 blog post that can be found here.

Continue Reading Hunton Insurance Partners Andrews and Levine Comment to Law360 and Business Insurance on Recent Ransomware Coverage Win for National Ink

In an article that first appeared in Electric Light & Power, Hunton & Williams attorneys Sergio F. Oehninger and Paul T. Moura discuss the growing Electric Vehicle (EV) industry and the risks posed due to the consequential strain on the power grid. As they explain, demand and investment in EVs will likely spur greater demand for supercharging stations that consume significant amounts of electricity. Urban centers and real estate owners are also expected to increase the supply of these stations in order to make these areas more attractive and accessible to EV owners, drone operators, and autonomous vehicle fleets. All of this growth will put increasing demands on electricity supply that can be difficult for businesses to control, leading to grid outages that can cause an interruption in business operations, an inability to access or restore system data, and significant losses of business income. All of this raises the question—Can businesses count on their insurance coverage to respond to the risks posed by EVs?

Continue Reading Connecting The Risks: Electric Vehicles and Insurance

In football as in life, the best defense is often a good offense. But, that adage does not always play well in litigation. In Riddell, Inc. v. Superior Court, No. B275482, 2017 WL 3614305 (Cal. Ct. App. Aug. 23, 2017), the California Court of Appeal blew the whistle on such a tactic, holding that an insurer could not use discovery tools in a coverage dispute with its policyholder in order to prejudice the policyholder’s defense in an underlying lawsuit.

Continue Reading Helmet Maker’s Insurers Sidelined After Using Coverage Dispute For End-Around On Liability Discovery

Hunton & Williams Insurance Recovery partner, Michael Levine, was quoted in an August 29, 2017 article appearing in Business Insurance, regarding the rapid increase in lawsuits, and insurance issues, surrounding concussions in high school and college sports.  Among other things, the article discusses a coverage lawsuit filed by Great American Assurance Company against Conference USA

Hunton and Williams LLP has published its 2016 Retail Industry Year in Review.  The Review discusses the key legal and regulatory developments that affected the retail industry last year.  In the Review, Hunton insurance coverage attorneys Syed Ahmad, Mike Levine and Jenn White discuss the lessons learned from insurance coverage cases that promise to

On October 27, 2016, my colleague, Michael S. Levine, was quoted in Business Insurance concerning the recent decision in Camp’s Grocery Inc. v. State Farm Fire & Casualty Co., which he and I discussed on October 26, 2016 on the Hunton & Williams LLP Insurance Recovery Blog.  In Camp’s, the court refused