When an insured suffers property damage or a business interruption loss for which they seek insurance benefits, most property insurance policies include provisions governing how the loss is to be resolved. Property policies generally include an appraisal provision that may be invoked to resolve disputes over the amount of an... Read more →

South Carolina Supreme Court Allows Insurer to Depreciate Cost of Labor When Calculating Actual Cash Value of Damaged Property

Property policies indemnify an insured for damage to covered property. They generally indemnify the insured for damaged property based on an actual cash value basis or replacement cost basis. Most property policies provide for indemnity based on replacement cost value, which indemnify the insured for the cost to repair or... Read more →

Indiana Supreme Court Rules that Insured May be Entitled to Insurance Coverage for Loss from Ransomware Attack

A recent report from the FBI’s 2020 Internet Crime Report shows that complaints of internet crime rose nearly 70% in 2020 as compared to 2109, with reported losses exceeding $4.2 billion. Cyber extortion and ransomware attacks were among the leading incidents of increased crime. Victims of a ransomware attack may... Read more →

Connecticut Restaurant’s Business Interruption Insurance Claim Arising from Governor Lamont’s COVID-19 Executive Order Barred by Virus Exclusion

A Connecticut federal judge issued the first decision barring a Connecticut policyholder from recovering business income losses under a property insurance policy arising from a government-ordered shutdown of its restaurant due to the coronavirus. Judge Michael Shea dismissed a proposed class action complaint filed in LJ New Haven LLC d/b/a... Read more →


Most liability insurance policies include a provision that requires the insurance company to defend the insured in a legal proceeding, that is hire an attorney to represent the insured and pay the insured's legal expenses in defending the lawsuit, when the lawsuit alleges a claim which is covered under the... Read more →

Massachusetts Proposes Legislation to Require Insurers to Pay Business Interruption and Loss of Use Losses Arising from the COVID-19 Virus

A bill was introduced in the Massachusetts legislature on March 24, 2020 that, if passed, will require property insurers which issue insurance policies in Massachusetts insuring against loss of use or occupancy of property or business interruption losses to pay for business interruption losses arising from the COVID-19 virus. The... Read more →

Maximizing Insurance Recovery for Losses from the Coronavirus/COVID-19 Pandemic

The coronavirus pandemic has had a significant financial impact on businesses in each industry that is likely to continue for an uncertain period of time. Many businesses have closed or limited their operations due to the virus, including restricted operations imposed by governmental authorities. It is also inevitable that there... Read more →

Connecticut Supreme Court Addresses Narrow Definition of “Collapse” Under Property Policy

In a companion case to the Karas v. Liberty Insurance Corporation case discussed in a previous entry, the Connecticut Supreme Court addressed the issue of collapse coverage under a property insurance policy which provided coverage when a building collapses and which narrowly defined the term “collapse” to mean “an abrupt... Read more →

Connecticut Supreme Court Addresses Collapse Coverage for Losses Arising From Defective Concrete

The Connecticut Supreme Court recently issued decisions in three cases resolving insurance coverage issues concerning the extent of coverage available for collapse of a building under property damage policies. As reported in previous entries, hundreds of homeowners in northeastern Connecticut suffered damage to their homes due to defective concrete supplied... Read more →

Second Circuit Court of Appeals: Connecticut Homeowners Insurance Policy Does Not Afford Coverage for Crumbling Concrete Basement Walls

In a previous entry, I referenced the many lawsuits filed by Connecticut homeowners involving crumbling concrete basement walls, in which homeowners seek coverage under their homeowner insurance policies for damage caused by deteriorating basement walls arising from hidden decay believed to be caused by defective concrete. On April 2, 2019,... Read more →