Archive for August, 2011

Post-hurricane, what will insurance cover?

August 30, 2011 2 comments

As thousands of residents on the East Coast cope with damage caused by Hurricane Irene, we thought it would be a good time for a reminder of what is covered and not by a standard homeowners insurance policy, generally known as an HO3. The vast majority of the estimated losses from this week’s storm are flood-related, which is not a covered peril on most homeowners policies. But flood coverage can be acquired in a variety of other ways. Some companies offer flood coverage as an endorsement to the homeowners policy, or it can be purchased as a stand alone policy via the NFIP or Federal Flood program (click here for more information).

Here are a few other items that could potentially limit coverage for hurricane-related Read more…

Preparing for Hurricane Irene

When confronted with an impending storm such as the forecasted Hurricane Irene, many companies find themselves vulnerable and unprepared for loss. This is particularly true in these difficult economic times when there is a greater dependency on a single source location for production capacity, inventory storage, third-party data centers, etc.  Additionally, many mid-size companies have not implemented, or even created, a comprehensive business continuity plan to rely on in such instances.

With Hurricane Irene gathering strength and making its way up the East Coast, now is a good time to review your facility’s emergency plan and ensure that copies are accessible off site. Here are other steps to take Read more…

Earthquakes will increase demand for insurance

Yesterday’s earthquakes were significant for a number of reasons. Certainly, the Virginia earthquake registering at 5.8 on the Richter scale and the Colorado temblor ranking 5.3 shook up citizens in a way that few from these areas can remember. While West Coasters may josh at upset populations in the Rockies and on the East Coast, these quakes may cost them something in the longer run, too.

In truth, most residents in both of the affected areas have not experienced the visceral feeling of fear and uncertainty caused by an earthquake. While the physical damage may be limited in both cases, the psychological reaction by insurance buyers is likely to be noticeable. Read more…

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Hospital litigates with its insurers over coverage

The current Connecticut case brought by victims of Dr. George Reardon, St. Francis Hospital is an apt illustration of a problem that is often ignored at the peril of insurance buyers. Where possible, should insurance purchasers buy insurance from the same insurance company in order to involve possible cracks between major related coverage lines, in this case, General Liability and Medical Malpractice? Often it may cost more in premium.

There are 60 or more child victims of Dr. Reardon’s abuse involving graphic, perhaps pornographic photography of patients. In short, the claims arose over a long period of time during which the hospital purchased insurance from several insurers for, among other things, General Liability and Medical Malpractice. The liability Read more…

Sony and Dropbox cases highlight cyberliability insurance coverage issues

August 15, 2011 1 comment

Two Peas in Different Pods

Much ink has been spilled about Zurich Insurance’s recent denial of coverage for the massive Sony Playstation breach. Some of the early commentary has been useful (mostly by providing accurate descriptions of what has transpired so far), while some has been wildly amiss (mostly by mischaracterizing the kind of coverage at issue). In the end, Zurich’s coverage denial will probably be confirmatory rather than revelatory — that is, it will likely confirm the warnings of experienced insurance professionals and not uncover any shocking new facts about coverage for breaches of privacy and data security.

Less attention has been paid to a pair of claims involving Dropbox, a popular cloud-based storage service. One claim was filed with the FTC, alleging that Dropbox had made false claims about the security of its users’ data. The other claim, a class action lawsuit, followed a self-inflicted breach Read more…

Consider supplemental health insurance when moving to a high deductible health plan

The employer sponsored health insurance marketplace has been under a very bright spotlight lately, with the focus on provider costs, insurance premiums, access to quality care, and employer provided coverage. In response to this, many insurance brokers are providing their clients alternative options to fully insured PPO and HMO plans. The most common alternative options are High Deductible Health Plans (HDHP’s), with the employer funding a percentage of the deductible, or Self Insured options. Here we focus on HDHP’s and their funding arrangements.

What is the most effective way to assist employees with funding their high deductible health plan? The most common solution is   Read more…