Press Release

Pillsbury's IRA practice has been retained to represent airline and other aviation clients to pursue their claims for coverage for business interruption losses arising from the Iceland volcano eruption which began on April 15, 2010. Practice leader Peter M. Gillon has advised clients that insurance coverage is indeed afforded under the property policies purchased by airlines. "There is a physical atmospheric barrier preventing landing and takeoff, and governmental orders shutting down the airspace," said Gillon. "I have represented airlines for 25 years, and I have yet to come across a volcanic ash exclusion." Gillon adds: "It is not surprising that insurers are taking the position that there is no coverage here, as this is a rather severe and unanticipated loss, but they should read the fine print in their policies; the coverage is there."