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Spring is upon us, which means the return of baseball. It seems only fitting that with a new season of America’s pastime just underway, we discuss another area where the performance in the lead-off position can be vital: leading off the claims process by providing notice to your insurer.

FEBRUARY 26, 2010: Cal State Fullerton gymnastics at in Fullerton, CA. Photo by Matt BrownSay your company’s just been sued, received a demand letter, suffered massive property damage, or incurred some other type of substantial loss. If your routine practice in these high-stress situations is to consider potentially applicable insurance, you’re ahead of the curve and should pat yourself on the back. Because too often, even if understandably, insurance is an afterthought to companies in the midst of a crisis. Unfortunately, in such situations, when a company does get around to making an insurance claim, the insurer commonly denies coverage on the basis of late notice.

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This post is a continuation of my top ten recommendations for negotiating your cyber insurance policy. The first five tips are in Part 1.

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North Texas never felt an earthquake until 2008. Since then, well over one hundred have been recorded—including a whopping five earthquakes confirmed in a single day in April 2015. Oklahoma had 585 earthquakes of magnitude 3 or greater in 2014, which rose to 907 in 2015. Areas spread across the central and eastern United States, from Colorado to Ohio, are experiencing increased seismic activity and the increased risk of earthquake-related property damage that comes along with it.

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cybersecurity imageAs more and more companies ranging across a wide spectrum of industries have been exposed to network and data security breaches, the market for insurance products to cover cyber risks has grown just as fast. With policies sold under names like “cyberinsurance,” “privacy breach insurance,” “media liability insurance” and “network security insurance,” the market is chaotic. Premiums and terms vary dramatically from one insurer to the next. And because cyber policies are far from uniform, it’s crucial to understand not only what you’re being offered, but also how to negotiate coverage for the risks inherent in your business. This post contains five of my top ten recommendations. (The remaining five tips are in Part 2.) Continue Reading ›

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In Fabozzi v. Lexington Insurance Company, the United States Court of Appeals for the Second Circuit has reaffirmed that ambiguities in an insurance policy must be construed against the insurer. Continue Reading ›

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Subcontractor default insurance (SDI) was created more than twenty years ago. Despite its relatively recent vintage, SDI is now offered by multiple insurers and is quickly replacing traditional subcontractor payment and performance bonds as a go-to option on large-scale construction projects. SDI has many benefits that surety bonds don’t. We’ll be going into this in substantial detail at our Fourth Annual Subcontractor Default Insurance Forum that Pillsbury co-presents, along with our friends at Willis Towers Watson, in Scottsdale in May. Continue Reading ›

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Spring brings warmer weather and a welcome return to green after winter gray. But spring can sometimes go too far, with rain that escalates into destructive floods. As floodwaters recede and cleanup begins, small-floodobtaining insurance proceeds and FEMA assistance are critical and immediate steps to recovery. The following practices can help maximize your recovery. Continue Reading ›

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Houdini managed an escape from a straight jacket while suspended 40 feet in the air. But that trick turned out to be easier than a primary insurer’s recent attempt to escape its duty to defend in California. In Underwriters of Interest Subscribing to Policy No. A15274001 v. ProBuilders Specialty Ins. Co., Case No. D066615, Ct. App. Dist. 4, Oct. 23, 2015 (Underwriters), the California Court of Appeal ruled that an “other insurance” clause in a CGL policy that purported to eliminate an insurer’s duty to defend if another insurer picked up the defense was unenforceable. Continue Reading ›

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Acquiring adequate insurance coverage against environmental risks, in particular the spill or release of pollutants or contaminants in day-to-day operations, is important to many construction businesses confronting the requirements of environmental regulation. For example, EPA’s hazardous waste rules require permittees (at both the state and federal level) to demonstrate financial responsibility for the operations of these facilities, including site closure and post-closure care, and coverage for sudden and accidental discharges. This requirement can be satisfied by proof of acceptable insurance coverageInsurance-300x168. In addition, having such insurance often assists companies facing the challenge of an extensive and prolonged Superfund cleanup. Many courts have ruled that the receipt of a Superfund Notice Letter from EPA triggers the responsibility of the insurer to provide the coverage in the policy. Continue Reading ›

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The universe of insurers still available to pay long-tail liability claims (e.g., asbestos, pollution, and other health hazards) is getting smaller every year. Significant domestic insurers like The Home, Midland and Mission declared bankruptcy years ago. Significant London Market companies continue to fade away, depriving policyholders with historic London Market policies of the opportunity to fully collect upon claims made and satisfied under those policies. Continue Reading ›