Perspectives on Insurance Recovery - Summer 2014

In this issue, we explore the great unknown of just what should be done to prepare for the “Big One.” In California, where earthquakes are as inevitable as wildfires—though far more destructive—commercial earthquake insurance should be an integral part of a long-range business plan. Those without earthquake insurance will likely count on the federal government for money to rebuild after a quake. But when the federal government helps out after a disaster, that help comes in the form of Federal Emergency Management Agency loans, which must be repaid. In addition, most general commercial property insurance policies in California do not cover loss resulting from an earthquake. Finally, history also shows that the insurance industry will argue for the narrowest interpretation of coverage. These factors, along with many others, are reasons why businesses and homeowners should plan ahead.

The issue also examines a recent ruling in New York that may put insurers on the hook for more damages from Superstorm Sandy. After a look at what precautions should be taken for the next hurricane season, we step away from the natural disasters to ponder pending counter-measures taken by the insurance industry to exclude coverage of cyber attacks in conventional commercial insurance policies. We also take a closer look at some of the key differences between U.S. and English approaches to choice of law and forum clauses. We will also examine the peculiarities of English insurance law, which applies when policies prescribe English choice of law or forum.

Download: Perspectives on Insurance Recovery