Financial Crisis

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The coronavirus (COVID-19) has already caused severe disruption to the economy. In the U.S., governmental entities as well as the private sector are implementing more and more drastic measures to respond to the coronavirus.  While these efforts may be wise in light of the substantial public health concerns, they threaten to bring parts of the economy to a virtual halt, adversely impacting most every business and resulting in substantial losses.  The Organization for Economic Cooperation and Development estimates that if the coronavirus continues to spread more widely, it could cut global growth in 2020 by half.

Business Interruption

As a company determines the impact of the coronavirus on its business, it should assess the business interruption coverage available under its commercial property (or “first-party”) insurance policies.  …
Continue Reading Business Interruption Coverage for the Coronavirus (COVID-19)

We hope your business did not sustain any direct property damage.  Even if that’s the case, do not fail to consider that you may have insurance coverage for financial losses caused by the storm.
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Continue Reading Superstorm Sandy: Financial Loss May Be Covered Even Without Property Damage

Kemper has been on the brink of insolvency for years.  It may have finally reached the end of its runway.  Last week, Kemper disclosed its most recent financials, which show that very little cash is left in its two major member companies, raising the specter that it may finally be placed into a liquidation proceeding.  Policyholders should be aware of the ramifications of a Kemper liquidation and take steps, if possible, to mitigate the impact a Kemper liquidation could have on their businesses.
Continue Reading Kemper Finally Close to Liquidation?

The litigation fallout from the Bernard Madoff investment scandal recently entered the realm of insurance when two individuals brought a class action suit against American International Group Inc. (“AIG”) in US District Court in the Southern District of NY, alleging the wrongful denial of coverage for losses suffered as a result of Madoff’s scheme.  The…