Tuesday, March 2, 2021

Commercial Property Insurance Coverage for Texas Winter Freeze Losses

For an incredible 10-day period in mid-February, Texas was battered by a brutal winter storm bringing snow, ice, and record-low temperatures. Millions of Texans were without power and water for days. These conditions forced thousands of Texas businesses to close during the storm. Many of these businesses also sustained property damage from pipe bursts and resulting water discharge. The property insurance claims have already started to come in. Some believe the storm will be the largest insurance event in Texas history.

Todd Tippett and David Winter, of the Dallas office of Zelle, wrote an article that addresses some of the issues expected to arise in considering whether commercial property insurance policies will provide coverage for Texas freeze claims.  Click here to read Commercial Property Insurance Coverage for Texas Winter Freeze Losses.

Friday, April 17, 2020

California: Developments in COVID-19 Business Interruption Claims

As the shelter-in-place orders continue to impact businesses across California, California’s lawmakers are responding to the growing unrest voiced by the state’s business owners.

Monday, March 30, 2020

California at Forefront of Business Interruption Coverage Response to COVID-19

The now ubiquitous shelter-in-place orders enacted across the United States began in the San Francisco Bay Area, followed days later by California Governor Gavin Newsom’s decision to issue the first statewide shelter-in-place order. It is fitting, then, that Californians are at the forefront of the fallout of these orders, namely, the interruption of myriad businesses and looming uninsured losses.

Thursday, March 26, 2020

Massachusetts and Ohio Follow New Jersey Attempt to Re-Write Existing Policies to Cover COVID-19 BI Losses

Lawmakers in Massachusetts and Ohio introduced bills this week to rewrite existing insurance policies to cover businesses’ economic losses arising from Covid-19 work stoppages. The proposed language in both measures mirrors a New Jersey bill that was introduced last week but tabled after insurance company representatives raised objections to its legality and constitutionality.

Wednesday, March 25, 2020

States are Limiting Insurers' Ability to Cancel Policies During Pandemic

Following other states, like Georgia, that have recently issued orders that prevent insurers from canceling insurance policies during the ongoing pandemic, Delaware has issued an order that insurers cannot cancel policies during the pendency of the declared state of emergency. Pennsylvania has not barred insurers from canceling policies, but the Insurance Commissioner issued a notice urging insurers to be flexible with payment options for those impacted by the pandemic, but did not prevent cancellations. 

Insurers should closely monitor this situation in every state to make sure that they are abiding by these ever-evolving orders from the states regarding cancellation of policies.

Posted by Jonathan MacBride

Tuesday, March 24, 2020

TDI Extends Claims-Handling Prompt Payment Deadlines In Response To COVID-19

Amid the chaos surrounding the COVID-19 outbreak, the Texas Department of Insurance has issued a Commissioner’s Bulletin extending certain claim-handling prompt payment deadlines for property carriers handling claims in Texas. The Texas Prompt Payment of Claims Act allows for a 15-day extension of claim-handling deadlines for property carriers in the event of a major national disaster, as defined by the Texas Commissioner of Insurance. In the wake of the Commissioner’s determination that the COVID-19 pandemic is a national disaster, Commissioner’s Bulletin # B-0007-20 establishes extended deadlines for claim-handling procedures for property carriers. 

Wednesday, March 18, 2020

State Bill for Coronavirus BI Coverage Recalls Prior Sandy Efforts

The coronavirus (COVID-19) public health emergency will certainly produce significant financial losses across the economy as businesses shut their doors for prolonged periods to avoid infections and exposures. In response, some state legislatures and regulators have begun exploring options to reduce the financial losses to businesses by attempting to allocate certain uncovered business interruption losses to property insurance carriers.