After March 11 earthquake and tsunami in Japan, U.S. businesses with Japanese operations, suppliers or customers have assuredly taken a close look at the business interruption language in their property policies. To remain up-to-date on the coverage issues raised by these catastrophic events, we invite our Community to access the following resources:
What Insurance Coverage to Look for in the Wake of Natural Disasters--McCarter & English on Earthquakes, Floods, and Disasters Near and Far: Policyholders Should Look for Cover in the CoverageBy Sherilyn Pastor, Ira Gottlieb and Nicholas M. Insua2011 Emerging Issues 5558This commentary addresses several types of insurance coverage, what they insure, and what to look for and consider when bringing a claim that may arise in the wake of a natural disaster. In particular, the commentary discusses several types of coverage typically found in a first-party property insurance policy, including property damage, business interruption, extra expense, extended business interruption, and contingent business interruption.
A Practical Guide to Evaluating Contingent Business Interruption Losses – FREE DOWNLOADby Lawrence T. Bowman and Kendall K. HaydenA FREE DOWNLOAD of this entire chapter is available to registered Community members
A "Suspension," "Interruption," or "Total Cessation" of Operations--Not So Fastby Richard P. Lewis and Michael N. DiCanioThis article discusses three categories of cases which have interpreted "suspension," or "interruption" language in light of insurance company arguments that a total cessation of operations is required. Specifically, we examine: (1) the "total cessation" requirement line of cases; (2) cases rejecting the "total cessation" requirement; and (3) cases finding no "cessation" of operations is required to recover lost Business Income under provisions tying coverage to an "interruption."
Effect of Post-Loss Economic Factors in Measuring Business Interruption Losses: An Insured's and Insurer's Perspectivesby Gregory D. Miller and Joseph D. JeanThis article discusses the developing body of case law analyzing how to measure business interruption losses where the insured's loss is affected by post-loss economic factors. In addition to discussing the two competing approaches, the article also analyzes several hypothetical scenarios from both an insured and an insurer perspective, which further serve to facilitate the discussion and highlight the significance of post-loss economic factors in measuring business interruption.
Sonnenschein Nath & Rosenthal, LLP on Earthquake Coverage: Then and Now2008 Emerging Issues 231By Cynthia Mellema, Jeff Butler and Norman LauWhile earthquakes and earthquake insurance are primarily matters of concern in CA, there have been earthquakes in 46 states since 1975 and insurers underwrite earthquake policies in all 50 states. This commentary examines the California earthquake experience with earthquake insurance and its potential importance beyond the state’s borders.
Business Income Insurance Disputes: Twenty Lessons Learned Since the Attacks of September 11, 2001by Richard P. LewisSince the World Trade Center attacks, time element litigation has exploded, with about 50 to 100 substantive decisions annually. With such a large mass of cases being decided in a relatively short time, and with little precedent to constrain litigants or guide courts, the parameters of time element coverage have changed dramatically in the past ten years. This article treats 20 points relevant to litigating and proving a time element claim which have developed since September 11, 2001, largely in cases addressing coverage for loss from the WTC attacks or the 2005 hurricanes.
Insurance Coverage Issues That Emerged from the World Trade Center Attacks – Business Interruptionby Mitchell L. LathropWell over 100 reported decisions have been rendered in connection with the WTC attack. This commentary discusses the insurance coverage issues that have emerged during the course of this litigation and examines: bodily injury within the designated period; bodily injury outside the designated period; property damage at the catastrophe site; valuation of loss; business interruption; terrorism insurance; errors & omissions; products liability; and workers’ compensation.
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