The construction industry is no stranger to insuring its projects against the risks of physical and natural disasters. Policies purchased to cover these risks, however, often are not broad enough to reach cyber threats, which can be just as damaging and costly as a physical disaster. During the past decade, hacks have targeted the data held by several high profile companies, including Target Corp., Sony Corp., Equifax Inc. and Yahoo Inc. So far, the construction industry has not yet been at the center of one of these attacks. Still, builders are no less susceptible to these risks than any other industry, especially given that these companies often possess sensitive data related to buildings and projects.
The Federal Financial Institutions Examination Council (“FFIEC”), a U.S. governmental body comprised of banking regulators, recently issued guidance to financial institutions directing them to consider implementing dedicated cyber insurance programs to offset financial losses resulting from cyber incidents. Financial institutions face a number of potentially crippling risks arising from cyber incidents, including financial, operational, legal, compliance, strategic, and reputational risks resulting from fraud, data loss, or disruption of service. While cyber insurance can mitigate these risks, it is not required by financial regulators, and thus many financial institutions may not have obtained such insurance specifically designed to cover their cyber risks. Nonetheless, the FFIEC now is urging financial institutions to include dedicated cyber insurance as part of a multi-faceted cyber risk management strategy and not to rely solely on traditional insurance. In addition, the FFIEC is recommending that financial institutions have their outside advisors review their potential cyber insurance coverage to ensure that it will cover the relevant risks.
The Daily Business Review, an ALM publication covering the south Florida business community, has named Hunton’s Insurance practice head, Walter Andrews, as a recipient of its 2018 Professional Excellence Award. The award recognizes exemplary work by attorneys in the legal profession and community. The award is a precursor to an event hosted by the Daily Business Review on May 30 at the Rusty Pelican in Miami, where one of this year’s three Professional Excellence Award winners will be named Attorney of the Year. Congratulations, and good luck Walter!
A recent ruling by U.S. District Judge Paul Byron of the Middle District of Florida has made clear that the actual words used in an insurance contract matter. The court, in Mt. Hawley Insurance Co. v. Tactic Security Enforcement, Inc., No. 6:16-cv-01425 (M.D. FL. 2018), denied an insurance company’s motion for summary judgment attempting to rely on an exclusion to deny coverage to its policyholder. The policyholder, Que Rico La Casa Del Mofongo, operated a restaurant establishment in Orlando, Florida, and sought coverage for two negligence lawsuits filed against it for allegedly failing to prevent a shooting and another violent incident on its premises.
With the wave of wage and hour litigation showing no signs of receding, employers often have questions about whether they should consider insurance coverage for these claims. In the first of this two-part interview, Hunton & Williams partners Emily Burkhardt Vicente and Walter Andrews discuss what employers need to understand about insurance coverage for state and federal wage and hour claims. View the 5-minute video here.
As we have previously written, students accused of hazing can obtain coverage under a parent’s homeowners’ policy. See our prior post. A recent New York decision provides the latest example.
A Florida state court has awarded over $5.5 million to singer Gloria Estefan’s hotel company in a lawsuit against Landmark Insurance Company because the insurer wrongly refused to cover building code-related upgrade costs after two 2004 hurricanes, Hurricane Frances and Hurricane Jeanne, severely damaged the hotel property. The case is Pin-Pon Corp. v. Landmark American Ins. Co., No. 312009CA0122-44 (Fla. 19th Cir. Ct. Dec. 28, 2017).
On Wednesday, my colleagues Walter Andrews and Katie Miller published a timely article in Florida’s Daily Business Review discussing the availability of insurance coverage for continuing losses suffered by businesses directly and indirectly affected by Hurricane Irma. The article, titled After Irma: Is Your Business Entitled to Insurance Coverage for Additional Lost Profits?, has equal application to those affected by Hurricanes Maria and Harvey. As the article explains, continuing business income losses may be covered under common property insurance policy provisions. Where they are not, the article provides insightful advice for policyholders as they approach policy renewal so they can fill gaps that may exist in their current coverages. A copy of the article can be found here.
In an article published in Law360, Hunton & Williams LLP partners Walter Andrews, Malcolm Weiss, and I discuss two recent decisions in Tree Top Inc. v. Starr Indem. & Liab. Co., No. 1:15-CV-03155-SMJ, 2017 WL 5664718 (E.D. Wash. Nov. 21, 2017). There, the Eastern District of Washington rejected an insurer’s attempt to escape insurance coverage for a Proposition 65 lawsuit filed against juice-maker Tree Top Inc.
Continue Reading “3 Takeaways Squeezed Out of Juicer’s Insurance Battle” – Hunton Attorneys Discuss Insurance Coverage for Prop. 65 Claims and Key Takeaways from Recent Set of Washington District Court Rulings.