It’s official—cybersecurity is now a top-ranked risk at the board level, according to the “Lloyds Risk Index 2013.” This should make digital risk a focus of senior corporate management.

Those managing corporate risk should leverage the emerging cyber insurance market, which is rapidly growing and evolving. But they should do so methodically, after

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.
Continue Reading Superstorm Sandy: Financial Loss May Be Covered Even Without Property Damage

After waiting over three years since granting review in State of California v. Continental Insurance Co. (previously discussed here) the Supreme Court of California heard oral arguments in the case yesterday morning.  This highly anticipated case touches on many important insurance coverage issues; principally how liability is allocated across multiple successive policies, and whether the limits of successive policies may be “stacked.”
Continue Reading Supreme Court of California Hears Arguments in State of California v. Continental Insurance Co.

Despite the financial and economic turmoil of the last several years – both nationally and globally – the insurance market has remained remarkably stable.  There have been surprisingly few insurance company failures, and premiums have remained at worst flat, and in most cases have seen year on year decreases.

As explained in a prior article I wrote, the soft market was largely the result of long term excess capacity in the market place – meaning insurers had to compete hard against each other to get clients’ business.  Another factor was the reinsurance market – the mechanism by which insurance companies insure the risks they take on and spread risk to a much wider pool.  For a number of years reinsurers have enjoyed relatively easy years, and have seen relatively few major catastrophic losses. Continue Reading A Look at Pricing Trends in the Insurance and Reinsurance Industries

The tragic events in Japan serve as a reminder of how fragile our lives and societies are.  Businesses too can be fragile, and can be easily disrupted by events completely outside of our control.  That’s one of the rationales behind commercial insurance.

A little over a year ago, I wrote about the complexities and challenges of both purchasing, and making a claim on, business interruption insurance. (Business Interruption Coverage – 2/18/10)  Because many US companies will be either directly or indirectly affected by the devastation in Japan, this is a good time to revisit that topic.
Continue Reading Japan’s Tragedy A Reminder To Review Your Business Interruption Coverage

Adequate preparation is essential for any mediation, and mediations involving insurance coverage issues are no exception.  Whether the focus of the mediation is the insurance coverage dispute itself, or whether the insurer is attending a mediation of the underlying action (with an expectation that it will fund any settlement), the insured can and should take

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?

Disputes over intellectual property that include allegations of anti-competitive conduct may raise a potential for insurance coverage.  Common allegations in this context which can trigger a duty to defend under the “personal injury” or “advertising injury” coverages found in the standard CGL policy include disparagement of another’s products.  A recent decision by Judge James Ware