The Return of the Bomb Cyclone

A year after a series of “bomb cyclones” struck the United States as reported by my partner Seth Jackson last year, the “bomb cyclone” is back in the news as part of large winter storm that wreaked havoc across the United States earlier this week. As a result of the most recent “bomb cyclone,” it was reported that nearly 650,000 people were without power and more than 80 million people were under high wind advisories.

Continue reading.

Hurricane Florence: Service Interruption Claims in North and South Carolina

As Hurricane Florence, now a Category 3 hurricane, with winds in excess of 120 mph, approaches the Carolinas, it is almost certain that there will be widespread and prolonged power outages throughout both states. This will inevitably lead to commercial insureds seeking coverage for business interruption losses arising from the disruption of power to their businesses. Whether these losses are covered will depend on the policy wording used and the specific facts of each loss. Nevertheless, in anticipation of these types of claims, it is prudent to become familiar with the outcomes of prior litigation arising out of service interruption coverage disputes. While there is a dearth of case law on this issue coming out of the courts of North Carolina and South Carolina, several decisions are instructive in evaluating claims arising from Hurricane Florence.

Continue reading.

Pardon this interruption… Service Interruption Provisions and Hurricanes

As the urgency to repair immediate physical damage to commercial property subsides, and businesses begin to get back to business as normal in the wake of Hurricanes Harvey, Irma, and Maria, we will undoubtedly see claims to recover lost revenue, or extra expenses incurred as a result of the storm.  These claims arise under a general claim for business interruption coverage. 

Continue reading.

Big Pharma BI, CBI, and Service Interruption Claims Percolating in Puerto Rico

As recovery and rebuilding efforts drag on in Puerto Rico, Hurricane Maria’s impact on Big Pharma is radiating across the U.S., and around the globe as the dozens of drugs manufactured in Puerto Rico become scarce. Maria brought drug manufacturing to a screeching halt in Puerto Rico, where about 10 percent of all drugs prescribed in the U.S. are made. The FDA is focused on about 40 drugs it expects to be in short supply, including 13 that are made only in Puerto Rico. 

Continue reading.