Melicent Thompson on Coverage for Covid-19 Business Income Losses

March 23rd, 2021|Categories: Complex Business Litigation, HB Risk Notes, HB Tort Notes, Insurance, Journal, News|Tags: , , , , |

Melicent B. Thompson on COVID-19 Coverage Abstract COVID-19 indisputably has taken an enormous economic toll. Governmental shutdown orders early in the pandemic and ongoing restrictions on business’ operations have resulted in a flood of claims for insurance coverage for business income losses attributable to those orders and restrictions. This article reviews the litigation and legislative developments directed at attempting to find insurance coverage for such losses and the reasons why those efforts have been unsuccessful for the most part. Author Melicent B. Thompson (mthompson@gllawgroup.com) is a Partner with the law firm Gfeller Laurie, LLP, in West Hartford, Connecticut. She thanks her fellow Gfeller Laurie, LLP attorneys who contributed to this article. Melicent has close to 25 years of experience in litigation and corporate counseling. She actively practices in Connecticut and Georgia courts in insurance coverage, business disputes, professional liability claims, defense of educational and financial institutions and general liability. Her insurance coverage practice encompasses all areas of first and third party claims and related litigation services, including declaratory judgment actions, defense of bad faith claims and reinsurance matters. Melicent has substantial appellate court experience, having briefed and argued appeals before the Second Circuit Court of Appeals and the Connecticut Supreme and Appellate Courts. Her pro bono work includes serving as General Counsel to the Board of Directors of Gifts [...]

Charlie Kingdollar on Emerging Issues Facing the Property & Casualty Insurance Industry

March 17th, 2021|Categories: Complex Business Litigation, HB Tort Notes, Insurance, News|Tags: , , , , |

Emerging Issues Facing the Property & Casualty Insurance Industry: What Has, What Is, What Will Be Charlie Kingdollar was Emerging Issues Officer for GenRe where he worked for 40 years, much of which was spent monitoring hundreds of new risks at any given time. In this article, Charlie discusses risks that have long-since emerged but continue today, risks that are starting to reveal themselves, and risks just starting to appear on the horizon. Read or download his article published in the latest issue of the Journal on Emerging Issues in Litigation.

Chubb’s COVID-19 Claim Denials Draw Litigation from Hollywood

December 7th, 2020|Categories: Complex Business Litigation, HB Risk Notes, HB Tort Notes, Insurance, News|Tags: , , , , |

Editor and Managing Director HB Litigation Conferences Editor@LitigationConferences.com Chubb’s COVID-19 Claim Denials Draw Litigation from Hollywood Well-known policyholder and insurance recovery attorney Kirk Pasich and his firm have sued Chubb insurance companies on behalf of policyholders in the entertainment industry to recover millions in losses they suffered as a result of the Covid-19 pandemic. Entertainment Business Interruption On Nov. 11, 2020, the firm filed suit on behalf of United Talent Agency LLC in Los Angeles County Superior Court against Vigilant Insurance Co. and Federal Insurance Co. UTA seeks coverage for the millions it lost when concerts and television and movie projections had to be cancelled. The complaint says both carriers are part of the Chubb group, “which has adopted a universal practice of denying coverage for all business interruption claims associated with SARS-CoV-2, Covid-19, and subsequent events” (UTA v. Vigilant, No. 20STCV43745, Calif. Super. Ct., Los Angeles). Acts affected include Post Malone, Guns N' Roses, and Toby Keith. The case hinges in part on the carriers’ assertion that there was no “physical loss or damage.” UTA finds Vigilant based its finding on little information, and knowing for decades that "many courts have held that the presence of a hazardous substance on a property, including the airspace inside buildings, constitutes property damage and that there may be ‘direct [...]

Assessing Risk in Medical Malpractice Mediation

December 5th, 2020|Categories: Complex Business Litigation, Insurance, Torts-On-Demand-CLE|Tags: , , , , , , |

HB Litigation Conferences presents Assessing Risk in Medical Malpractice Mediation CLE-eligible on demand webinar | Recorded 2021 Lawyers and claims professionals assess litigation outcomes all the time. The parties do not. You can help. Understandably, parties in medical malpractice disputes do not fully appreciate the risks inherent in litigation and are not aware of how continued litigation affects their underlying interests in the dispute. For example, some parties see the outcome as a reflection of their personal character. These challenges can hamper the parties' ability to make good decisions in litigated medical malpractice cases. Even organizations that are experienced in assessing litigation risk can make more decisions in these cases with adverse outcomes. Hear our panel of medical malpractice and insurance attorneys and litigation experts as they share their insights on successfully guiding individuals and organizations through these disputes. Registration Includes Nearly 90 minutes of insights from experienced professionals. CLE credit: 1+ (subject to bar rules). For CLE questions: CLE@LitigationConference.com The complete Power Point presentation. Continued access to the complete recording for later use. Answers to your questions via email to the presenters or write to HB and we will be sure to contact the speakers. REGISTRATION Key Points What are the intangible costs of medical malpractice litigation for individuals and [...]

Cyber Captive Survey 2019 — AON

June 26th, 2019|Categories: HB Risk Notes, Insurance, Technology Law|Tags: , , , , |

Aon’s Cyber Captive Survey 2019 says that the rapid growth in the captive market of cyber-specific policies underscores that cyber is one of the primary risks for organizations across the world driven by an increasingly complex operational, technological and regulatory environment. Key findings include: Healthcare and energy industries are leading the way, with 19% and 15% of organizations in these industries utilizing captives for cyber coverage respectively. 41% of captives surveyed are incubating cyber risk. The range in limits of cover taken out is up to USD$100 million. An estimated 34% of all captives will be writing cyber in five years’ time. Read the complete report here! 

Wells Fargo Proposes to Settle Auto Insurance Case for $386M — Yahoo!

June 26th, 2019|Categories: Class Actions, HB Risk Notes, Insurance|Tags: , , , , |

In 2017 customers of Wells Fargo & Company (WFC) filed a class action lawsuit alleging the bank forced unwanted auto insurance without permission from the customers. Currently WFC plans to pay around $386 million to settle the 2017 class action lawsuit. The high payout is due to the sheer number of customers affected. About 270,000 WFC customers were "pushed into delinquency " and "almost 25,000 wrongful vehicle repossessions." In addition to the class action settlement, WFC will be reaching out to individual customers offering financial service recovery, and restructuring their leadership teams. WFC is still seeing a decrease in sales and their numbers. In six months WFC shares "lost 4.5% against 6.5% growth recorded by the industry." Read the complete post on Yahoo! here.

Moving Your Corporate Data to the Cloud: Top 13 Things to Think About as you Review Your Hosting Agreement — Judy Selby Consulting

May 6th, 2019|Categories: HB Risk Notes, Insurance, Technology Law|Tags: , , , , |

Some data migration risks can be mitigated at the cloud contract stage, Allison Bird, Judy Selby’s partner at Clearview Privacy Consulting LLC, explains. Regarding indemnification, Bird says, "If data is lost or exposed by the hosting company, your company as well as any affiliates who use the services will be subject to suits from clients and individuals whose data was impacted.  You may also be subject to regulatory scrutiny which could result in legal costs and regulatory penalties.  To the extent possible, negotiate a full indemnification of third party claims arising out of the hosting services." She says the limitation of liability section of your hosting agreement "may be the single most important" part.  "Your hosting company may make a lot of promises in the agreement.  However, if their liability under the agreement is significantly capped, you won’t receive the monetary compensation necessary to make up for hosting company’s acts and omissions that damage the company. Negotiations for a higher cap will translate into real dollars in the event of a security incident." Of course, insurance is always a good solution if done right. "You can negotiate the perfect contract but unless your hosting company has a deep pocket, it may not have sufficient capital to make good on contractual obligations in the event of a breach or data loss situation, especially [...]

The Cloud: Selected Benefits, Risks, and Insurance Coverage Issues (Part 1) — Barnes & Thornburg

May 6th, 2019|Categories: HB Risk Notes, Insurance, Technology Law|Tags: , , , , |

Cloud Risk: Do You Transfer Liability Along with Data? Many of us were using data clouds before we even knew what they were. Now, while most of us are comfortable with the concept, we may not be comfortable knowing who is liable when data is lost, damaged or breached. It's not a given that your cloud provider absorbs any liabilities, and it's not a given they can even afford the liability should it arise. Below are quotes from an article by Scott Godes, Kara Cleary, and Heidi Fessler of Barnes & Thornburg LLP on the subject, and a link to their complete article.  Godes, Cleary, and Fessler list several cloud-related risks: data breaches, data loss, interruption of access, compromised credentials and broken authentication, and denial of service.  But two other categories for concern are:  #1. BYOC, or Bring Your Own Cloud. Employees may be innocently using productivity applications that store work data on non-company clouds, in effect, "bringing their own clouds" to the workplace. #2. Multi-Tenancy. This involves risks posed when unrelated cloud users are sharing the same computing resources.  "Both the cloud provider and the user must be aware of system and data security to prevent a breach in the security. In addition, when a risk is realized, it may not always be clear who is at fault for the [...]

Foggan & Huggins on Opioid Litigation Defense Coverage

October 31st, 2018|Categories: HB Risk Notes, Insurance, Mass Torts|Tags: , , , , |

Is a drug company that's sued in connection with the manufacture, promotion and distribution of opioids covered by its insurer for defense costs? According to Laura A. Foggan and Michael Lee Huggins of Crowell & Moring, LLP, that determination will come down to whether, in the relevant state, an accident takes place when either the act or the injury was unintentional, or whether an accident occurred if only the act was unintentional. This definition will vary by state, Foggan and Huggins wrote in California Litigation, published by the Litigation Section of the California Bar earlier this year. South Carolina may permit coverage if "either the act or the injury was unintentional," they explained. In Liberty Mutual v. J.M. Smith, the Fourth Circuit held that if a drug company failed to identify and alert regulatory agencies of suspicious drug orders, then there may be a duty to defend. But in California, the Crowell & Moring attorneys wrote, with that state's definition of "accident" a state appellate court in Travelers v. Actavis held that a "deliberate act is not an accident, even if the injury is unintentional, unless the injury was produced by an additional, unexpected, independent, and unforeseen happening." In that case drug company Actavis allegedly engaged in deceptive marketing in order to sell more opioids and reap more profits. According to Foggan and Huggins, [...]

Cyber Insurance Policy Language Review: A Deep Dive Into Key Policy Provisions and Important Differences Among Cyber Policies | Oct. 25, 2018 | Now On-Demand!

October 3rd, 2018|Categories: HB Risk Notes, Insurance, Technology Law|Tags: , , , , |

[one-third-first] Now Available On Demand PLACE: Your computer or mobile device PRICE:  $197 CLE: 1 credit Please send CLE questions to CLE@LitigationConferences.com SPEAKERS: Judy Selby Principal Judy Selby Consulting LLC  Scott Godes Partner Barnes & Thornburg Please contact us with any registration questions: Brownie.Bokelman@LitigationConferences.com Kathleen.McFadden@LitigationConferences.com Your registration includes: •  A site license to attend this webinar (invite as many people in one location as you can fit around your computer at no extra charge). • Downloadable PowerPoint presentations from our speakers. •  The opportunity to connect directly with speakers via email to        HBWebinars@LitigationConferences.com •  At least one-hour of CLE credit. Produced in collaboration with Judy Selby Consulting LLC Also available as part of your subscription at the Thomson Reuters West LegalEdcenter. [/one-third-first] [two-thirds] What's in your cyber policy? Cyber insurance can provide a lifeline to companies dealing with today’s high stakes and constantly evolving cyber risk and regulatory compliance landscape. But not all cyber policies are created equal, and a single policy word can mean the difference between a covered and an uncovered claim.   In this session, we analyze various cyber insurance coverage terms, conditions, and exclusions and describe how the words can impact coverage for real-life claims. What you will learn: • Important differences among generally available insurance coverages for cyber and privacy risks  • Understanding basic cyber insurance policy conditions and [...]

A.I. Best Practices: Rules and Policies for Using Artificial Intelligence in Your Business

July 30th, 2018|Categories: HB Risk Notes, Insurance, Technology Law|Tags: , , , , |

Explore how cybersecurity breaches impact insurance, risk management, and data privacy with evolving legal and compliance challenges. [one-third-first] DATE: Sept. 27, 2018 TIME: 2 p.m. EDT; 1 p.m. CDT; 12 p.m. MDT; 11 a.m. PDT PLACE: Your computer or mobile device PRICE: $197* per dial-in site *Price is good through Aug. 16. After that it's $247. GROUPS ARE GOOD: Registering qualifies you to multiple attendees at your location. CLE: 1 credit Please send CLE questions to CLE@LitigationConferences.com SPEAKER: John Frank Weaver Attorney McLane Middleton Your registration includes: •  A site license to attend this webinar (invite as many people in one location as you can fit around your computer at no extra charge). • Downloadable PowerPoint presentations from our speakers. •  The opportunity to connect directly with speakers during the audience Q&A session. •  At least one-hour of CLE credit. Produced in collaboration with and their new Journal of Robotics, Artificial Intelligence & Law [/one-third-first] [two-thirds] Nearly every industry is adopting or preparing to adopt artificial intelligence applications into their business practices. That's exciting. However, there are almost no government regulations for their use and few resources providing best practices that anticipate ethical considerations and forthcoming legal requirements. This lack of direction poses a serious problem as A.I. applications become more widespread. Businesses are creating their own ad hoc practices without considering the [...]

Joshua Gold on Cyber Crime and Insurance

July 24th, 2018|Categories: HB Risk Notes, Insurance, Technology Law|Tags: , , , , |

With the amount of trickery going into thefts and embezzlements these days, crime insurance companies too often use the many steps involved in a fraudulent scheme to argue that losses are indirect and otherwise uncovered. The recent decisions of the Second Circuit and Sixth Circuit on the “direct loss” argument and the scope of computer fraud coverage are important victories for policyholders generally, making clear that where the predominant step in the chain is some type of covered fraudulent misconduct involving a computer, a court is not going to entertain a direct loss defense to excuse the insurance company from paying. As such, policyholders should be familiar with their crime coverage and promptly notify all potentially implicated lines of insurance coverage when a cybercriminal is afoot. -- Joshua Gold, Anderson Kill  Read Josh's complete article.  Joshua Gold is Chair of Anderson Kill’s Cyber Insurance Recovery Practice and was amicus counsel for United Policyholders in the Medidata Solutions, Inc. v. Federal Insurance Company case before the Second Circuit.

Go to Top