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SPAC CAPTIVES: ‘Blank check’ companies examine D&O options in tough market - PAGE 4
MAY 2021
SPECIAL
REPORT
CLAIMS
MANAGEMENT
PAGE 22
RANSOMWARE
PROTECTIONS
Cyber defenses need rethink
as hackers step up attacks
PAGE 16
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PRESIDENT
Steve Acunto
(Greenwich)
sa@businessinsurance.com
COVER STORY
PUBLISHER
Keith Kenner
(Chicago)
kkenner@businessinsurance.com
EDITOR Companies have faced a surge
Gavin Souter in ransomware attacks during
(Chicago)
gsouter@businessinsurance.com
the pandemic as employees
shifted to working from home.
DEPUTY EDITOR
Claire Wilkinson But experts say businesses
(New York) can reduce the threat by
cwilkinson@businessinsurance.com
focusing companywide on
ASSISTANT EDITOR
security, developing an
Louise Esola
(New Orleans) incident response plan and
lesola@businessinsurance.com maintaining a separate data
SENIOR REPORTER backup system. PAGE 16
Judy Greenwald
(San Jose)
jgreenwald@businessinsurance.com
REPORTER
Angela Childers
(Chicago)
achilders@businessinsurance.com
INSIDE
REPORTER
Matthew Lerner
(New York)
mlerner@businessinsurance.com
COPY CHIEF
SPECIAL REPORT: CLAIMS MANAGEMENT
John Obrecht The workers compensation industry is seeing a decline in opioid prescribing but a
(Chicago) concerning uptick in the use of more-expensive alternatives. Meanwhile, the pandemic
jobrecht@businessinsurance.com
has strengthened the advocacy approach to comp claims. PAGE 22
COPY EDITOR
Brian Gaynor
(Portland)
bgaynor@businessinsurance.com NEWS ANALYSIS SPAC CHALLENGES
ART DIRECTOR SPAC sponsors are exploring captives as a D&O solution,
Jeremy Werling FOR BREAKING NEWS but they may not be an exact fit. PAGE 4
(Cincinnati)
jwerling@businessinsurance.com COVERAGE, VISIT
DIRECTOR OF RESEARCH,
businessinsurance.com VACCINATION MANDATES
PLANNING AND INSIGHTS Employers are treading lightly when it comes to requiring
Andy Toh COVID-19 vaccinations for their employees. PAGE 8
(Chicago)
atoh@businessinsurance.com
MAJOR ACCOUNTS DIRECTOR - INTERNATIONAL
NORTHEASTERN U.S. & INTERNATIONAL Ivory Coast is the leading market in the CIMA region,
Ron Kolgraf
(Boston) attracting foreign-owned insurers and reinsurers. PAGE 12
rkolgraf@businessinsurance.com
SENIOR VICE PRESIDENT,
BUSINESS DEVELOPMENT
Stephen Acunto
(Princeton) PERSPECTIVES
stephen@businessinsurance.com
HEAD OF SALES, EVENTS
Dealing simultaneously with ADA, FMLA and
workers comp laws is akin to whack-a-mole,
VIEW FROM
& REPRINT SALES MANAGER
Susan Stilwill
writes Robin E. Shea of Constangy, Brooks, Smith THE TOP
(Nashville) & Prophete LLP. PAGE 31
sstilwill@businessinsurance.com
VICE PRESIDENT OF MARKETING DAVID POMS
Brian McGann
(Buffalo) OFF BEAT Poms & Associates
bmcgann@businessinsurance.com Theme parks in Insurance Brokers
LEGAL BRIEFS LLC, was founded
DIGITAL AD OPERATIONS MANAGER California are back
Jordan Kilty
Recent court opinions PAGE 14
open, but remember: 30 years ago. David
(Raleigh)
If you must scream, Poms, president of
jkilty@businessinsurance.com OPINIONS
please do so silently. the Woodland Hills,
DIGITAL MARKETING MANAGER Time to pass cannabis insurance law;
Jen Jonasson PAGE 34 California-based
(Chicago) flood cover. PAGE 30
company, is deeply
jjonasson@businessinsurance.com
involved in insurance
MARKETING & EVENTS MANAGER MARKET PULSE
and risk management in the education sector,
Brittany Collins Products, deals and more PAGE 32
(Lafayette) including helping to formulate laws and procedures
bcollins@businessinsurance.com
to curb child sex abuse. He discusses the challenges
PEOPLE
MARKETING & EVENTS SPECIALIST in preventing abuse and how related settlements have
Beth Wojdyla Insurance industry moves PAGE 33
(Chicago) affected the insurance market. PAGE 15
bwojdyla@businessinsurance.com
SUBSCRIPTIONS & SINGLE COPY SALES BUSINESS INSURANCE (ISSN 0007-6864) Vol. 55, No. 6, Copyright © 2021 by Business Insurance Holdings, Inc. is published monthly by Business Insurance Holdings, Inc., 1030 Lake Avenue,
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954-449-0736 Printed in the USA. POSTMASTER: Send address changes to Business Insurance at PO Box 1010, Greenwich, CT 06836.
BUSINESS INSURANCE MAY 2021 3
NEWS ANALYSIS
SPACs face challenges buying D&O cover:
Can captives provide the right solution?
BY CLAIRE WILKINSON
cwilkinson@businessinsurance.com
C
aptive insurers, long a home for hard-
to-place risks and seeing greater use in
the hardening commercial insurance
market, are being eyed as a potential
solution for the directors and officers
liability problems facing special purpose
acquisition companies.
A rapid rise in the volume of SPAC deals
has led to a surge in demand for D&O
insurance. Recent regulatory scrutiny of
SPACs has compounded insurer wariness
of these risks. As a result, D&O coverage
costs, which were already climbing, have
accelerated, leaving the so-called blank
check companies exploring alternatives.
But trying to cover SPAC initial pub-
lic offering D&O risks through captives
could be problematic, experts say.
Captives are “longer-term plays
and not really a solution you can pivot
to midterm in your negotiations.”
Kristin Kraeger, Aon PLC Captives are more frequently being dis- There’s a “fundamental mismatch” kins said. “A SPAC by its nature has a
cussed as potential vehicles to solve the between the timeline of a captive and the limited amount of working capital and
riddle of maintaining broad coverage, timeline of a SPAC, said Priya Cheri- then goes into the capital markets and
accessing sufficient limits and controlling an Huskins, San Francisco-based part- raises a lot of money, but all of that
Captives have been used in D&O costs in a hard or hardening market, said ner and senior vice president at broker money is held in trust. It’s not available
programs outside of the SPAC realm, Machua Millett, Boston-based SPAC Woodruff Sawyer & Co. for other activities,” she said.
but there are “potential headwinds” leader at Marsh LLC. “A SPAC typically will decide to form
for SPACs in using them, said Kristin However, the major hurdle for SPACs and need its insurance within a very
Captive conundrum
Kraeger, national SPAC and IPO leader considering captives is timing. “The typ- short period of time whereas a captive
at Aon PLC in Boston. ical lifecycle for the SPAC and deSPAC is designed to be economically efficient The Delaware Insurance Department
SPACs have a finite existence (see box), process is only about two years at most, for a company that has operating profits is beginning to receive inquiries about
whereas captives are “longer-term plays and sometimes as short as six months and will be in business for many years,” forming captive insurers for SPAC D&O
and not really a solution you can pivot from the SPAC IPO to the close of the she said. risks, said Steve Kinion, the state’s captive
to midterm in your negotiations,” Ms. reverse merger. Captives take some time Funding is another factor that makes a insurance director.
Kraeger said. to arrange and set up,” Mr. Millett said. SPAC ill-suited for a captive, Ms. Hus- “It becomes a question of whether
there’s enough capacity in the D&O
WHAT’S IN A SPAC? market right now to provide coverage
for all these SPACs. If there isn’t, then
Special purpose acquisition companies are shell companies formed for the purpose of raising capital to acquire existing businesses. at some point they will need to find cov-
The structures allow businesses to become listed without going through a traditional initial public offering.
erage somewhere, because like all other
SPAC LIFECYCLE companies SPACS want highly qualified
directors and officers,” he said.
STAGE 1 STAGE 2 STAGE 3 D&O coverage is critical for SPACs to
attract and retain qualified directors and
IPO Business combination New public company
officers because the pace at which they
A SPAC is created, the sponsor selects After the IPO, the SPAC executives search Once the combined company is fully operating,
target acquisitions and complete deals
directors and files a Form S-1 registration for a target company. Once identified, the it carries all the risk of a public company,
statement with the U.S. Securities and SPAC combines with the target to form including the risk of public shareholder
exposes them to shareholder scrutiny and
Exchange Commission to bring the SPAC one publicly traded company. The business derivative lawsuits. potential lawsuits.
public. Once approved by the SEC, the SPAC’s combination, known as the de-SPAC, typically To attract and retain qualified directors In Delaware, single-parent captives,
shares begin public trading on an exchange. occurs within two years of the IPO. and officers, pre-and post-acquisition captive cells and series captive insurers
SPACs must offer comprehensive directors provide D&O coverage, Mr. Kinion said.
Sources: Morgan Lewis & Bockius LLP, news reports and officers liability coverage. While captives typically provide years
4 MAY 2021 BUSINESS INSURANCE
SPAC IPO TRANSACTIONS — BY YEAR $100.3B Side A-only policies tend to be about
20-25% cheaper than an ABC policy,
IPO count $83.3B Marsh’s Mr. Millett said.
Gross proceeds Some SPACs are comfortable purchas-
308 ing Side A-only coverage, said Jonathan
*As of April 26, 2021
Selby, general manager at Foundershield
248 LLC, a brokerage in New York.
Others, such as those wanting higher
limits, perhaps up to $10 million or even
higher, are buying $5 million of ABC
$10.8B $13.6B coverage, and “instead of building on top
$10.0B
of that with full ABC, they will purchase
59 Side A for another $5 million excess of
34 46
their underlying ABC coverage,” Mr.
2017 2018 2019 2020 2021* Selby said. “There are some cost savings
Source: SPACInsider to be had by going that route.”
In the high-cost environment, some
of coverage, captives have been formed to for a fee,” he said. Kinion said. buyers have chosen to purchase Side A
insure joint ventures between two com- A group captive, in which entities with “The conflict arises because a captive coverage only, said Kevin LaCroix, exec-
panies where the captive’s existence is less similar risks come together and jointly is owned by the company, the insured. utive vice president in Beachwood, Ohio,
than five years, he said. own a captive, might also work better than Should the captive be providing coverage for RT ProExec, a division of R-T Spe-
Many large companies, including a single-parent captive because it’s quicker for a claim when the corporation itself cialty LLC.
operating companies being acquired by and easier to access, Mr. Raskin said. — the company that owns the captive — “How that will respond in the event of
a SPAC, may already have a captive, so Regardless of which captive funding cannot indemnify the officer or director? a claim is a question they need to work
“the use of that single-parent captive or option is selected, using a proper actuari- That’s the issue,” he said. with their legal and insurance advisers
establishment of a new one would be the al study, implementing claims procedures, It’s possible that the use of a protected on,” he said.
most common” approach, said Jeff Kurz, and following insurance accounting prac- cell company could be regarded as more The working capital of a SPAC is lim-
managing director, captive insurance sales tices are critical to demonstrate that the distanced from the company itself and ited, and SPAC directors and officers
and consulting, North America, at Artex captive should be treated as an insurance therefore a better fit to fund a nonindem- don’t have access to the trust money to
Risk Solutions Inc., the captive manage- company, Morgan Lewis said in a March nifiable loss, several experts said. pay their legal fees should an enforce-
ment unit of Arthur J. Gallagher & Co., brief on SPACs and captives. ment action begin, Woodruff Sawyer’s
in Columbus, Ohio. Ms. Huskins said.
Other options
However, if a company is looking to That makes the prospect of sitting on
The Side A problem
cover just its D&O retained risk, then In addition to captives, various alterna- the board of a SPAC with little insurance
a protected cell captive may be a more In the hard commercial insurance mar- tives, such as buying Side A-only cover- unappealing. “My advice to people who
cost-effective and less capital-intensive ket companies in general, in addition to age, a 12-month versus a 24-month pol- are thinking about insurance for a SPAC
option, he said. SPACs, are exploring alternatives for Side icy term and different ways to structure is to … understand what an appropriate
Given a SPAC’s limited purpose and A D&O coverage, including captives. premium payments, are being considered budget in the current market is, which is
existence, a protected cell captive or While some Side B and Side C D&O by SPACs, said Ms. Kraeger of Aon. dynamic,” Ms. Huskins said.
a group captive is likely a more viable exposures are covered by captives, Side A
option than a single-parent captive struc- coverage is more problematic. Side A
ture, said Jeffrey S. Raskin, San Fran- coverage provides indemnification for “A SPAC typically will … need its insurance within a very short period of time
cisco-based partner at Morgan Lewis & directors, officers and employees for
Bockius LLP. claims when a company cannot provide whereas a captive is designed to be economically efficient for a company
Cell captives, where companies essen- indemnification. Sides B and C cover
tially rent the use of a cell within a larger corporate exposures. that has operating profits and will be in business for many years.”
captive, could be a better fit for the accel- Business corporate laws may prohibit Priya Cherian Huskins, Woodruff Sawyer & Co.
erated lifecycle of a SPAC because they or place into question whether a captive
are “already an existing entity that is used insurer can provide Side A coverage, Mr.
Insurers cautious over recent surge in SPAC deals, legal activity
A dditional regulatory scrutiny
and the sharp rise in SPAC
deals in the first quarter of this
year have heightened the wariness
of the few insurers willing to write
have to pay high prices for, D&O
insurance, because the market has
become so tight and the prices have
gone up,” Mr. Conaghan said.
SPACs are a specialized class with
double what it would have been just two
quarters previously,” Mr. LaCroix said.
While SPACs are becoming the path of
choice for many companies wanting to
go public, they face the same challenges
but with a “heightened interest”
in the unique potential risks that
SPACs have, Mr. Kurz said.
Given the SPAC boom, “we’re now
at the point where sponsor teams on
primary directors and officers liability a limited number of underwriters as any other public companies related their second, third and even fourth
coverage for the sector, experts say. prepared to offer coverage, said Kevin to D&O risk, said Jeff Kurz, Columbus, SPAC are asking: ‘Why did the price
There were 308 SPAC IPO LaCroix, executive vice president in Ohio-based managing director, captive double? Why did retentions increase?
transactions this year as of April 26, Beachwood, Ohio, for RT ProExec, insurance sales and consulting, North Why are my limits more restrictive?’”
compared with 248 for all of 2020, a division of R-T Specialty LLC. America, at Artex Risk Solutions. said Jonathan Selby, general manager at
according to SPACInsider. In 2020, several lawsuits, including “It’s a hard market — we all broker Foundershield LLC in New York.
Some of the most recent SPAC IPOs a putative class action complaint filed understand that — but with SPACs Retentions for a SPAC IPO, which
have started to include information on against electric car manufacturer there’s heightened awareness of the ended 2020 at around $5 million,
risk factors related to D&O insurance in Nikola Corp. in September, “sent potential shareholder lawsuit issues that are now potentially as high as $10
their registration statements, said Thomas a bit of an alarm bell to the D&O are starting to come to the forefront million to $12.5 million, Mr. LaCroix
P. Conaghan, a partner at McDermott underwriting community,” he said. related to the prospectus and issues said. Not surprisingly, there’s a lot of
Will & Emery LLP in Washington. “In Q3 2020 the pricing began to and securities class actions,” he said. interest in using alternative vehicles
“The risk disclosed is that the SPAC escalate, to the point that by Q4 the Generally, insurers are pulling back to fund the retention, he said.
will not be able to obtain, or will pricing for a SPAC IPO was more than capacity and increasing premiums Claire Wilkinson
BUSINESS INSURANCE MAY 2021 5
NEWS ANALYSIS
Federal cannabis bill opens door for insurers
BY MATTHEW LERNER cial services” and “cannabis-related busi-
mlerner@businessinsurance.com nesses” to make them broader and more
inclusive, Mr. Stewart said.
A
bill introduced in Congress that would Cannabis companies would benefit from
allow insurers to cover cannabis-relat- increased competition among insurers,
ed businesses without fear of prose- which could help drive down insurance
cution under federal law is expected to prices, create more choice in some special-
substantially ease constraints on the bur- ty lines and alleviate capacity and policy
geoning sector if it makes it into law. language restrictions in the directors and
The bipartisan Clarifying Law Around officers liability insurance market, Mr.
Insurance of Marijuana Act of 2021, Stewart said.
which would provide a safe harbor for “The CLAIM Act, if it passes, is the
insurers covering risks in states where best hope for a large increase in capacity,”
the federally banned drug is legal, could said Jonathan Isaacson, a partner in
help open insurance markets for cannabis Woodbury, New York with law firm
operators and companies in their supply Kaufman Dolowich Voluck LLP. “With
chains, industry observers say. the CLAIM Act and the safe harbor from
“Any piece of federal legislation that the federal government, you’ll hopefully
explicitly recognizes the cannabis indus- see capacity increases across the board.”
try as legitimate would have the effect degrees, has led to confu- vide a federal regulatory “The introduction of the CLAIM Act
of increasing capacity significantly for sion and friction among framework for the canna- is great news as it could enable addition-
CLAIM
the insurance industry,” said Justin M. cannabis operators, who bis industry, which could al capacity from both issuing carriers and
Lehtonen, vice president at wholesale often have great difficul- include oversight and reinsurance providers for the growing can-
broker Worldwide Facilities LLC in ty obtaining insurance for regulation, such as the nabis industry,” said Charles Pyfrom, chief
Act
Los Angeles. their operations. Food and Drug Admin- marketing officer of CannGen Insurance
Insurers and others “are looking for an W hile some insurers istration overseeing the Services, one of the insurers currently writ-
opportunity to begin backing this busi- offer coverage to canna- quality and compliance ing cannabis business.
ness,” he said. bis companies in the U.S., of cannabis edibles, Mr. Insurance groups have welcomed the
The cannabis industry “definitely needs many others are deterred INTRODUCED BY: Virdi of Hub said. legislation, and “this time I think there
some kind of federal order,” said Jay Virdi, by the potential for sanc- Senator Robert Menendez The CLAIM Act is is a palpable optimism for passage,” Mr.
Toronto-based chief sales officer for Hub tions under federal law. (D-NJ), March 18, 2021 designed specifically for Stewart said.
International Ltd.’s cannabis insurance and A spokesman from the insurance industry Momentum for Congress to pass the leg-
risk services in the U.S. and Canada. Sen. Menendez’s office COSPONSORED BY: and is simple to under- islation has continued to build, said Nicole
According to the text of the bill, which called the measure “com- Sens. Rand Paul (R-KY) stand, said Ian A. Stew- Austin, senior vice president of federal
was introduced in March and is an update mon-sense legislation” and Jeff Merkley (D-OR) art, a partner with Wilson affairs for the Reinsurance Association of
of unsuccessful 2019 legislation, the inten- to help provide access to Elser Moskowitz Edel- America, in an email.
tion is “(t)o create a safe harbor for insurers “basic tools” for business, “To create a safe harbor man & Dicker LLP in The American Property Casualty
engaging in the business of insurance in including insurance. The for insurers engaging Los Angeles. Insurance Association also supports the
connection with a cannabis-related legit- CLAIM Act also “recog- in the business of “It allows property/casu- legislation.
imate business, and for other purposes.” nizes states’ rights,” he said. insurance in connection alty and other types of In addition, more states have a meaning-
with a cannabis-related
The legislation is sponsored by Senators If passed, the measure insurers like life to oper- ful amount of cannabis-related tax revenue,
legitimate business,
Bob Menendez, D-N.J., Rand Paul, would be a boost for the ate with a legal safe har- said Mr. Lehtonen of Worldwide Facili-
and for other purposes.”
R-Ky., and Jeff Merkley, D-Ore., and cannabis insurance sector, bor” in terms of accepting ties. “People from states with a significant
Representatives Nydia Velázquez, D-N.Y., industry experts said. “The term ‘financial cannabis-derived monies, amount of activity already in the cannabis
and Steve Stivers, R-Ohio. In addition to establish- service’ … includes the he said. industry want to see this moved forward.”
Differences between state and federal ing the safe harbor for business of insurance.” The new legislation “If you look at how much tax revenue is
law, which still classifies cannabis as ille- insurers, the legislation is changes some definitions being generated by the cannabis industry,
gal despite a majority of states passing the first of what should Source: 117th Congress, 1st Session
from the 2019 version, it’s amazing. The states can really benefit
laws that legalized cannabis to various be several steps to pro- including those for “finan- from this revenue,” Mr. Virdi said.
MARIJUANA INSURANCE MEASURE COULD CLEAR REINSURANCE INDUSTRY HURDLE
E xclusions in reinsurance contracts
have been cited repeatedly by industry
sources as a major impediment to
expanding the choice of insurers and
insurance capacity for cannabis operators
individuals have basic protections that
insurance provides so that they can
safeguard their property, employees
and customers,” Frank Nutter, president
of the Reinsurance Association of
legal businesses and businesses that
support them,” said Tony Kuczinski,
chief operating officer of Munich
Re U.S. Holding, in an email.
The creation of a safe harbor would
and introduction of the legislation
and are very supportive of it.
“Since late 2018, the insurance industry
has worked with federal lawmakers
on legislation to provide a federal safe
and their ancillary service industries. America, said in a statement. enable the development of “a vibrant harbor for the state-regulated business
This could change as the proposed One of the group’s larger members also insurance marketplace” for legal cannabis- of insurance so that our industry
Clarifying Law Around Insurance of sees the benefits of the legislation. related businesses, Mr. Kuczinski said. can provide products and services to
Marijuana Act of 2021 has the backing of “The proposed federal CLAIM Act Nicole Austin, senior vice president businesses and individuals that have a
the principal U.S. reinsurer trade group. removes the legal uncertainty currently of federal affairs for the RAA, said direct or indirect relationship with state-
“It is essential that state-legalized faced by insurers and reinsurers regarding the group’s member companies have legalized cannabis,” Ms. Austin said.
cannabis-related businesses and our ability to serve cannabis-related contributed to the development Matthew Lerner
6 MAY 2021 BUSINESS INSURANCE
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NEWS ANALYSIS MORE
HEALTH
STAFF GET
Employers wary of vaccine mandates COVID-19
SHOTS
BY LOUISE ESOLA
V accine uptake
among front-line
REUTERS
lesola@businessinsurance.com health care workers
is rising, according to a
E
mployers hoping that widespread survey by the American
COVID-19 vaccinations could enhance Nurses Association.
their workplace safety protocols are tread- “We have certainly
ing lightly when it comes to requiring the seen a transition where
shots for their employees. more nurses are … stating
Emerging state proposals that would ban that they have been
such mandates and issues surrounding the vaccinated or that they
vaccines themselves make companies cautious intend to get vaccinated,”
about requiring their use, experts say. said Kendra McMillan,
Even employers of workers at the greatest Some employers a senior policy advisor
risk of COVID-19 infection and transmis- are offering for nursing practice and
sion are opting to not mandate vaccinations, workplace work environment at the
they say. vaccination Silver Spring, Maryland-
Health care workers were among the first clinics on-site based association.
group in many states to become eligible for to administer The association’s most
vaccination in December. Results of a poll shots to eligible recent COVID-19 survey
released in March by the Kaiser Family Foun- employees. of 22,316 nurses found
dation and The Washington Post showed that that 30% have not been
18% of the 1,327 health care workers polled sity researchers said they will not get vaccinat- that people are making and management in vaccinated but that 34%
said they would not get vaccinated and 12% ed. Other surveys showed similar results and charge … don’t want to be in the position to of those who haven’t are
were undecided. found that some workers didn’t want to be force someone to make a decision,” he said. planning to do so — a
The New York Department of Health in vaccinated because of uncertainty surrounding The approval of one of the three available number Ms. McMillian
April set a new policy for nursing homes the vaccines’ safety and other health concerns. vaccines in the United States — the Johnson & expects to grow, as
whose staff do not wish to be vaccinated for In mid-April, the U.S. Centers for Disease Johnson/Janssen COVID-19 vaccine — was 25% are undecided.
COVID-19 after finding that as many as half Control and Prevention reported that 140 mil- halted in April after several people suffered “We are seeing the
of such employees who work with high-risk lion adults — 54% of the U.S. population — fatal side effects, but it was later reinstated data move in the right
populations declined to be vaccinated. Nurs- had received at least one dose of the vaccine. when regulators determined that the benefits direction … (but) we do
ing home staff who refuse vac- One compelling reason for of having the vaccine outweighed the risks. still have those individuals
cinations must sign a waiver,
according to the new policy.
“There’s a whole seriesnot mandating vaccinations
is that the vaccines are under
Also, lawmakers in more than a dozen states
are considering bills that would prohibit
who are in that wait and
see category,” she said.
First responders are another of controversies related
emergency use authorization mandatory COVID-19 vaccinations. “(We are) working
high-risk group of employees and classified as “voluntary,” “A lot of employers early on were looking to correct what may
with vaccination hesitancy, to the vaccine itself.”said Helen Holden, a partner at at the mandatory vaccines, and we had a lot be incorrect in the
according to David Mill- Spencer Fane LLP in Phoenix. of questions about it … and most have set- information people
Dr. Jonathan Weiner,
er, Miami-based labor and “Employers are keenly aware tled on encouragement and incentives,” Ms. are seeing” about the
Johns Hopkins Bloomberg
employment law attorney with that they are doing this vaccine Holden said. vaccine, she said, adding
School of Public Health
Bryant Miller Olive P.A., rollout in an environment with Fern Fleischer-Daves, of counsel with the that education and
whose clients include sever- that emergency use authoriza- Washington office of Conn Maciel Carey outreach have been key.
al municipalities. Mr. Miller tion,” she said. LLP, is compiling a list of employers offer- “There’s a lot of power in
estimated that roughly half of his clients’ first “There’s a whole series of controversies ing incentives. They range from $500 cash — hearing about someone’s
responders have declined the vaccine despite related to the vaccine itself,” said Dr. Jonathan such as a large Texas health system is offering experience and we have
high infection rates. In the summer of 2020 Weiner, professor of health policy manage- its workers — to vacation days and gift cards. to talk about it. … As
at least one-half of a client’s fire department ment and health informatics at the Johns While the U.S. Equal Employment Oppor- people see more people
personnel were on leave because of COVID- Hopkins Bloomberg School of Public Health. tunity Commission has said employers can get vaccinated, it is friends
19, he said. Mr. Miller said some employers are demon- make vaccinations mandatory, workers can and family, I think, that
Overall, 25% of 802 people polled between strating “respect for individual choice.” decline for religious or health reasons, and influences their decision.”
Feb. 25 and March 1 by Monmouth Univer- “This is potentially a life and death decision employers would have to accommodate such Most employers “are
workers, according to Courtney Malveaux, figuring out what the
FEWER TAKE ‘WAIT AND SEE’ APPROACH TO VACCINATIONS Richmond, Virginia-based principal and barrier is” for people
attorney with Jackson Lewis P.C. who have declined to
The percentage of people declining COVID-19 vaccinations has remained stable since the availability of
vaccines became widespread, while the percentage of those who say they are waiting is steadily shrinking. It’s another reason many employers are opt- be vaccinated, said Fern
ing to encourage rather than require vaccina- Fleischer-Daves, of counsel
Already gotten As soon as possible Wait and see Only if required Definitely not
tions, he said, noting that this approach has with the Washington office
DEC.
34% 39% 9% 15%
resulted in an acceptable outcome for most. of Conn Maciel Carey
2020
One client was able to get 75% of its work- LLP. “For some people,
JAN.
2021 6% 41% 31% 7% 13% force vaccinated, Mr. Malveaux said. “Ulti- it is misinformation. …
mately, they decided 75% is pretty good and (Employers) are combating
FEB.
2021 18% 37% 22% 7% 15% we can work with that,” he said. “Getting that misinformation, so
MARCH
25% may not be worth it (legally), and you employers are bringing
2021 32% 30% 17% 7% 13% may never get there.” in the health department
NOTE: December 2020 survey did not have an option for respondents to indicate they had already been vaccinated. to talk to them.”
Source: Kaiser Family Foundation Angela Childers contributed to this report. Louise Esola
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RISK MANAGEMENT
T
HIS YEAR’S Risk & Insurance Management Society Inc. annual confer-
ence, which opened April 19, was held virtually. It featured more than 170
online risk management educational sessions covering various hot topics,
from how risk managers are navigating the hard market to the COVID-19
pandemic’s impact on coverage and claims. The following stories are a round- CONTINGENCY MARKET MAY SEE
up of Business Insurance’s reporting on the sessions. PANDEMIC LOSSES UP TO $6B
T
he contingency insurance market, which includes coverage
for the cancellation of special events, could still see multibil-
RIMS Ms. Dunkin said. lion-dollar losses related to COVID-19, possibly as high as
PRESIDENT To be successful, risk man- $6 billion, according to experts.
agement must be represented Peter Rossow, who handles commercial risk, health and benefits,
URGES RISK in the boardroom, and a new retirement and reinsurance solutions for Aon PLC, and Ryan
MANAGERS initiative, RIMS – Path to the McGuinness, managing director, risk management, in Daytona
TO EXPAND Boardroom, explores strategies
to help risk managers become
Beach, Florida, for NASCAR, spoke about the elements of such
insurance during the Risk & Insurance Management Society Inc.’s
SKILLS members of boards, she said. 2021 conference.
“We’ll examine the skills and Contingency insurance can more broadly include things such
T
he COVID-19 pandem- competencies needed for board as hole-in-one insurance, where an insurer covers the cost of
ic has tested the skills of service and what to expect the prize if the feat is achieved; or even a contract bonus for an
many risk managers, but along this professional jour- athlete who makes the playoffs, Mr. Rossow said. Covered costs
having helped their organi- ney,” Ms. Dunkin said. can range from damage to the event location and adverse weather
zations navigate the crisis, The RIMS conference to terrorism, he said.
risk managers should strive to offered sessions related to the The policies are usually short-term contacts that cover the
extend their reach, the Risk & initiative, and RIMS plans to days of the events but can be annual contracts covering multiple
Insurance Management Soci- add related webinars and pod- events, which is the type of policy NASCAR has in place, Mr.
ety Inc.’s 2021 president said. casts, she said. McGuinness said.
“It seems as though every Ellen Dunkin In addition, RIMS plans Event cancellation policies are typically all risk policies, Mr.
risk that the risk management other programs and initiatives Rossow said, for which underwriters want to know things like
community has ever prepared During the pandemic, risk to help risk managers, includ- the location and timing of the event, among many other variables,
for came to fruition in 2020,” professionals provided insight ing revamping the RIMS including security. While usually associated with special events
said Ellen Dunkin, who is also and direction to help their Risk Maturity Model, said like sports, such policies can also cover trade functions such as
senior vice president, general organizations adapt and remain Mary Roth, CEO of RIMS. RIMS, he said.
counsel and chief risk officer resilient, Ms. Dunkin said. The benchmarking tool was NASCAR’s Mr. McGuinness said underwriters also want to
for Amalgamated Life Insur- Going forward, risk manag- launched more than a decade understand what emergency action plan exists, such as that which
ance Co. in White Plains, New ers should continue to make ago to aid enterprise risk man- would cover evacuation.
York. Ms. Dunkin began her their voices heard, she said. agement initiatives. Both speakers stressed the importance of contract clarity with all
one-year presidency of RIMS “As individuals and as a com- RIMS will also launch an parties and vendors associated with an event and said underwrit-
in January. munity, let’s be strategic advis- app giving members access to ers may even wish to see those contracts as part of their review.
She was speaking during ers and key contributors who curated content such as reports NASCAR’s first COVID-19-related cancellation was the
the opening session of RIMS’ enable growth and innovation. and research, she said. March 2020 Atlanta Motor Speedway event, Mr. McGuinness
annual conference. We must be indispensable,” Gavin Souter said. Racing returned without fans at the end of April.
Matthew Lerner
MARINE CARGO Inc.’s 2021 conference. the fine print may mean. It’s RISK MANAGEMENT
POLICIES CALL One of the oldest marine cargo
insuring clauses refers to “touch-
good to work with your broker
to get the most comprehensive
FOR CAREFUL ing the adventures and perils language you can,” he said.
NAVIGATION which this company is content
to bear and take upon itself, they
Other important insuring
clauses to watch for are sue and
M
arine cargo policyholders are of the seas, fires, assailing labor coverage, demurrage cover-
should work with a knowl- thieves, jettisons, barratry of the age and fraudulent bills of lading.
edgeable broker to maxi- master and the mariners, and all Policyholders should work with
mize their coverage and strength- other like perils, losses and mis- a seasoned broker to uncover the first party realm will try and faith — insurers will argue that
en their hand in the event of a fortunes that have, or shall come variations in language that might limit the amount of time a pol- the policyholder must disclose all
claim dispute, according to Joshua to the hurt, detriment or damage narrow the scope of coverage, icyholder has to start coverage information that may be material
Gold, a New York-based partner of the goods insured or any part Mr. Gold said. litigation in the event there’s a to their underwriting decision,
at Anderson Kill P.C. thereof,” he said. “Get the broadest version you dispute and the insurer refuses to but which wasn’t necessarily
Anachronistic policy language, Even if this kind of language can. Often, it’s worth the addition- pay the claim,” he said. inquired about, Mr. Gold said.
lack of uniformity across cover- persists, marine cargo policy- al premium money and legwork to These time limitations can be “It’s an area where some insur-
age forms and shorter statutes holders should insist that insur- comparison shop and find the best much shorter than the six-year ers may take a very aggressive
of limitations are key issues ing forms have all risk language coverage form you can,” he said. suit limitation clause under New approach to an otherwise covered
that marine cargo policyholders akin to what one would see in a Many marine cargo insurance York law, he said. claim and try and rescind the
have to navigate, Mr. Gold said commercial property policy, Mr. policies have a shortened statute Under a marine insurance insurance policy to avoid paying
during a session of the Risk & Gold said. of limitations, Mr. Gold said. doctrine known as “uberrimae a claim,” he said.
Insurance Management Society “Get into the details of what “Lots of insurance policies in fidei” — the duty of utmost good Claire Wilkinson
10 MAY 2021 BUSINESS INSURANCEMOVING DATA RISK MANAGEMENT WORKERS COMP
TO CLOUD HELPS
UNDERWRITERS
ASSESS CYBER
LIABILITY RISK
T
he increased amount of data
cloud providers can offer as
more information moves to limits, with cloud data provided managing director, alternative risk
the cloud will help underwriters by a Google LLC unit. transfer, at Allianz SE unit Alli-
write cyber risk and their policy- By 2024, more than 45% of IT anz Global Corporate & Special-
holders in turn, say insurers and a
cloud provider.
spending will shift from tradition-
al solutions to the cloud, said panel
ty, said insurers have to deal with a
fast-changing risk landscape. “It’s
COVID-19 PRESUMPTIONS
“From an insurance perspec- moderator Monica Shokrai, risk complex,” and many companies CREATE CLAIMS CHALLENGE
tive, we like as much certainty as consulting lead and actuary, busi- are still migrating, or planning to FOR WORKERS COMP SECTOR
we can get our hands on,” said ness risk and insurance, for Google migrate, to the cloud, he said.
T
Robert Parisi, New York-based LLC in Mountain View, Califor- Mr. Yee said clients have tradi- he trend of workers compensation presumptions could be
head of cyber-North America for nia. She was citing data from risk tionally struggled with managing a turning point for the industry, according to a panel of
Munich Re’s facultative and cor- consultancy Gartner Inc., based in the risk, as insurers have struggled workers comp experts.
porate unit. With organizations Stamford, Connecticut. to identify which vendors the Dozens of states have in place presumptions for certain
migrating to the cloud, “that pro- Mr. Parisi said that while risk insureds are using, the extent of workers — mostly first responders — who suffer from various
cess becomes simpler.” aggregation is a concern the their engagement, and the criti- cancers, heart disease or post-traumatic stress disorder. And
Mr. Parisi spoke during a ses- insurance industry must be aware cality of the services they provide. now COVID-19 is compensable in some cases, with employ-
sion of the Risk & Insurance of and evaluate, “we really want to Obtaining these data resources ers on the hook to cover infections that have been presumably
Management Society Inc.’s 2021 get our noses under the tent to see from cloud providers offers great- contracted at the workplace.
virtual annual conference. what’s going on,” which is why er insight, so that insurers can Sixteen states currently have such COVID-19 presumptions
In March, Munich Re and Alli- cloud migration is exciting to the prospectively manage their port- in place and several more are considering them, retroactive to
anz SE units were offering a pro- extent data about an organization folios, Mr. Yee said, adding it can the start of the pandemic in March 2020.
gram that combined a new cyber can be shared. create a sustainable risk transfer. Presumptions present challenges for employers in part
policy with up to $50 million in Jody Yee, New York-based Judy Greenwald because “COVID-19 is something you can be exposed to any-
where,” said Max Koonce, chief claims officer for third-party
administrator Sedgwick Claims Management Services Inc.,
during a session of the Risk & Insurance Management Society
Inc.’s 2021 conference
INVESTIGATE WORKERS COMP “The risks of COVID-19 are simply associated with the risks
COMP of daily living,” he said. “If you are at an employer for eight
hours a day you have sixteen other hours a day that you are out
CLAIMANTS ON there in the environment when you can be exposed to it just
SOCIAL MEDIA: carrying on with your life.”
EXPERTS He spoke briefly about similar challenges regarding cancer
presumptions and the inherent risk that about one-third of
F
rom extreme sports competi- adults will get cancer in their lifetime.
tions to amateur football and Such presumptions are problematic in that they are a “broad
twerking, workers compen- are coinciding with any subjec- in other activities that directly brush” for compensability, said Joan Vincenz, managing
sation investigators have uncov- tive complaints.” contradicted her claimed abili- director of operations risk for United Airlines Inc., which has
ered many instances of workers When it comes to investi- ties, according to Mr. Lederer’s implemented COVID-19 safety precautions for workers as the
fabricating injuries and pain. gating injuries, the wealth of presentation. That surveillance Centers for Disease Control and Prevention introduced them.
Employers must commit to information available on social saved the company more than “As every recommendation has rolled out we implemented
helping workers suffering from media has made it easier to $80,000 on her claim, he said. it,” she said.
legitimate work-related injuries, scrutinize and surveil those Another claimant who said his Most COVID-19 presumption laws are rebuttable, meaning
but they also need to take steps claims, said Kevin Lederer, pain was so severe he couldn’t if an employer can prove the worker was infected elsewhere it
to validate questionable injuries regional account manager for sleep at night was caught play- can deny the claim. Under some state laws if an employer is
and vet social media to uncover Command Investigations LLC ing football on an amateur team, taking all safety precautions the claim is rebuttable, Ms. Vin-
fraudsters, experts said during in Orlando, Florida. and another who said he was cenz said, adding that this “intent” — ensuring employers take
a session of the Risk & Insur- “Over 90% of millennials are unable to work was caught spin- safety precautions seriously — is understandable.
ance Management Society Inc.’s using social media. … Half of ning and twerking with a group Ms. Vincenz said it’s the things employers can’t control that
2021 conference. the baby boomer population are in a dance studio. Both surveil- make her “uncomfortable with the presumptions.” She noted
While the “best claim is on social media in some sort of lance leads were gleaned from that living environments or off-duty activities can expose
the claim that never exists … fashion,” he said. social media, Mr. Lederer said. someone to COVID-19 and that “sometimes it’s safer” for an
(employers) have to have a key For example, one woman who “There are times you are employee to be at work because of the safety measures in place.
vision — pay the claims that claimed she was unable to drive going to have claimants that are “We are doing everything we can. … We can’t control the
are owed and defend the claims or bend at the waist was not legitimate,” he said. “But when home environment. That’s where I don’t think presumptions
that are not,” said Steve Figli- an avid social media user, but you find someone that is being are meeting the intent,” she said. “Similar to flu, it’s hard to
uolo, Atlanta-based principal through her husband’s social untruthful with you ... doing a tell where you got it.”
program lead, enterprise risk media accounts — and public social media investigation on The trend toward presumptions could change the dynamic
management, at Chick-fil-A pages from an extreme sports someone who is active (on sites) within workers compensation, Ms. Vincenz said.
Inc. “If you’re an employer, race — investigators learned or has links that are active and “It is always dangerous to use a broad brush; it is all about
but stories just aren’t adding that she was participating monitoring those — it’s going the details” of an injury, she said. “We need to be ready to
up, it’s important to really look and obtained surveillance in to save everybody money in the investigate each (claim) and make sure that you are deciding
at things and see what are the just one day of her crawling long run.” on the merits. … That’s what I think presumptions are in
actual objective findings that through the mud and engaged Angela Childers danger of taking away.”
Louise Esola
BUSINESS INSURANCE MAY 2021 11INTERNATIONAL
PROFILE: IVORY COAST
MARKET
DEVELOPMENTS
Updated March 2021
n The COVID-19 pandemic has
affected sectors differently
depending on their size and
98
Ivory Coast is the leading market in the Conference activity. Reduced investment
Interafricaine des Marches d’Assurances region. in the construction and energy
It is well developed relative to other markets in the sectors meant major projects were
region, with a large number of local and foreign-owned delayed until this year, leading
insurers, and it has become a center for reinsurers to reduced demand for imports
that wish to obtain authorization to operate in the of machinery and equipment.
CIMA region. It has well-developed broking and n Large companies across most
bancassurance segments and has recently begun to sectors keep higher stock levels
see the emergence of digital-only intermediaries. The and so were better equipped to
growth in the insurance market has been encouraged withstand the disruption to their
by a degree of political stability and by foreign supply chains during the pandemic.
investment, notably from China, India and North Africa. Small and medium-sized businesses
GLOBAL Per capita spending on nonlife insurance (property and have been hit the most and were
P/C MARKET casualty) is still low at only $9.94 in 2018, reflecting more likely to seek insurance
RANKING the low earnings of many Ivorians. The market AREA premium “holidays” from insurers.
124,503
generated $254 million of nonlife premium in 2019.
n The pandemic has not resulted in
claims under business interruption
insurance policies, as a material
MARKET SHARE AUTO
damage trigger is required, but
32.2%
square miles travel restrictions have reduced
motor vehicle usage and auto
LIABILITY insurance buying. Sources estimate
3.6% there was an overall reduction
of nonlife market premium of
MISC. as much as 20% in 2020.
4.6% POPULATION n Publication of the CIMA regulation
20.62
PA & HEALTH
CARE WRITTEN on digital insurance, expected for
MARINE, BY NONLIFE several years, has been delayed
AVIATION & COMPANIES again because of the need to
TRANSIT 32.4% align it with planned changes
10.5% million to existing regulation designed
to encourage the establishment
of specialist micro-insurers.
PROPERTY n The Insurers’ Association of
16.6% Ivory Coast is involved in work to
create a digital platform for the
MARKET CONCENTRATION management of auto third-party
66.16%
MARKET GROWTH liability insurance business, which
In millions, U.S. dollars is compulsory. This is not expected
Life Nonlife PA & Health
to be completed before 2022.
350
n Under the 2019 Construction and
300 market share of top five insurers Housing Code, construction all risks
insurance is mandatory as well
250 as the purchase of a performance
bond from a bank or insurer.
200
n Swiss Re opened an underwriting
150 2021 GDP CHANGE office in Abidjan in October
(PROJECTED) 2019, enabling it to operate
6.2%
100 across the entire CIMA region.
50
0
2015 2016 2017 2018 2019
Source: Axco Global Statistics/Industry Associations and Regulatory Bodies
COMPULSORY INSURANCE NONADMITTED INTERMEDIARIES MARKET PRACTICE
n Auto third-party liability or injury to third parties The law provides that insurance Intermediaries must be There is a concerted effort
on the ground as well as must be purchased from locally authorized to do insurance across the CIMA region to
n Marine cargo imports
injury to passengers and authorized insurers, with the business. They are not reduce fronting and encourage
n Professional indemnity damage to baggage or exception of companies that allowed to place business coinsurance as a means to
for insurance brokers goods being transported provide specialized insurance with nonadmitted insurers. provide extra local market
n Construction all risks liability services to one or more CIMA capacity and retain as much
n Third-party liability and
member states, although this is premium as possible locally.
n Workers compensation all risks insurance for
subject to supervisory approval.
(state scheme, part airport operators
of social security) n Shipowners liability for
n Air carriers and aircraft marine oil pollution (financial Information provided by Axco.
operators liability for third- guarantee or insurance)
For free trial access to
party property damage
global insurance intelligence,
visit axcoinfo.com.
12 MAY 2021 BUSINESS INSURANCEIT’S TIME TO EXPECT MORE FROM YOUR MEDICAL LIABILITY INSURANCE COMPANY.
More means combining insurance protection with data analytics
to reduce the downside risks of value-based care programs.
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*A.M. Best financial rating is held by Medical Professional Mutual Insurance Company and its affiliate underwriting companies.
COPYRIGHTED. Insurance products issued by Medical Professional Mutual Insurance Company and its insurance subsidiaries. Boston, MA
Ad Template.indd 8 4/26/21 7:35 AMLEGAL BRIEFS
and dozens of Lloyd’s syndicates in state
court in Las Vegas, seeking compensation
for the more than $2 billion in losses it said
case and was overturned by an appeals
court panel in a 2-1 ruling.
“The statutory language in Title III of
DOCKET
it has sustained from the pandemic. the ADA defining ‘public accommodation’
The Reno, Nevada-based casino opera- is unambiguous and clear,” the majority
tor said it’s paying more than $25 million opinion said. “It describes twelve types of
in premiums for more than $3.4 billion locations that are public accommodations.
in coverage limits under its all-risks cov- “All of these listed types of locations are
erage, according to the complaint filed in tangible, physical places. No intangible
Caesars Entertainment Inc. v. ACE America places or spaces, such as websites, are list- INSURANCE DOESN’T
Broker loses case Insurance Co. et. al. It said it has paid more
than $135 million for the coverage over
ed. … Absent congressional action that
broadens the definition of ‘places of public
COVER HERTZ LOSS
A federal district court in New
due to poor advice the past six years.
The complaint said all of Caesars’ prop-
accommodation’ to include websites, we
cannot extend ADA liability to the facts
York ruled that units of American
International Group Inc. and
n The New Hampshire Supreme Court, erties were shut down in March 2020 presented to us here.” Tokio Marine are not obligated to
in a divided opinion, ruled against an under orders of gaming control boards and The appellate panel vacated the lower indemnify Hertz Global Holdings
insurance broker for providing poor advice other civil authorities, and most reopened court ruling and remanded the case for Inc. for $27 million in costs incurred
on a hotel’s insurance coverage. with limited operations in May and June. further proceedings. in connection with a U.S. Securities
Golden Beach, Florida-based 101 Ocean None of the insurers named in the com- and Exchange Commission
Blvd. LLC had worked with Exeter, New
Hampshire-based Foy Insurance Group
plaint had a virus exclusion in their cover-
age, according to the complaint. Mohawk tribe loses investigation. AIG unit National
Union Fire Insurance Co. had
Inc. as its insurance agent for several prop-
erties since the early 2000s, according to
Caesars said certain of its all-risk policies
include coverage triggered when orders of
interruption case issued Hertz a $15 million insurance
policy that permitted it to recover
the 3-2 ruling by the New Hampshire a casino control commissioner or simi- n A Mohawk casino that closed its doors for securities claims against the
Supreme Court in 101 Ocean Blvd. LLC lar authority prohibits access to covered in March 2020 after a COVID-19 case company. Tokio Marine provided an
v. Foy Insurance Group Inc. properties. was reported at a nearby college cannot additional $15 million of insurance
In 2014, Lloyd’s of London opted not “This ‘Closure by Casino Control Com- recover under its FM Global unit policy’s coverage for claims made and paid
to renew its policy on the Ocean Boule- missioner or equivalent’ coverage applies business interruption coverage, a New under the National Union policy.
vard Hotel in Hampton, N.H. Turning even if the covered Property never suffers York federal district court ruled.
to the surplus lines market, Foy obtained any physical loss or damage, so long as The Saint Regis Mohawk Tribe, which FIRM PLEADS GUILTY
a $2 million replacement cost policy that the order was made in anticipation of such operates Mohawk Gaming Enterpris- TO OSHA VIOLATIONS
provided for $10,000 in law and ordinance loss or damage,” the complaint says, stat- es LLC on reservation land in Franklin Transportation company Dana
insurance coverage, which is designed to ing Caesars is entitled to coverage under County, New York, closed the Akwesasne Container Inc., based in Avenel,
pay for the increased costs associated with this provision. Mohawk Casino Resort after a virus case New Jersey, pleaded guilty to
complying with current building codes and was reported at St. Lawrence College, violations of Occupational Safety
other ordinances when rebuilding a struc- 4.5 miles across the Canadian border in and Health Administration rules
ture after a loss. Ontario, according to the ruling by the pertaining to individuals working
“At no time did Foy recommend that U.S. District Court in Utica, New York, in confined spaces, according to
(owner Albert J. Bellemore Jr.) purchase in Mohawk Gaming Enterprises, LLC v. the U.S. Department of Justice.
additional law and ordinance coverage on Affiliated FM Insurance Co. On May 31, 2019, one of Dana’s
behalf of Ocean,” the majority opinion said. Mohawk filed a business interruption workers was scraping crude
In October 2015, a fire severely damaged claim with FM Global unit Affiliated FM oil from a rail car at a yard in
the hotel. Mr. Bellemore was told the cost Insurance Co. seeking business interruption Pittston, Pennsylvania, when he
to replace the existing structure would be coverage based on the tribe’s closure order. collapsed and died on the scene of
about $1.1 million, and rebuilding it in As the 30-day deadline for investigat- asphyxiation. Although Dana was
compliance with the current building code ing and settling the claim neared without aware that the agency’s regulations
would cost an additional $905,070. He a response, Mohawk filed suit against the require the use of a certified
decided to demolish the structure rather insurer on charges including breach of respirator for such confined space
than rebuild it.
After accounting for depreciation, the Supermarket chain contract and fraud, according to the ruling.
“Mohawk Gaming’s claim for coverage
tasks, the worker had not been
provided one, the DOJ said.
insurer paid Ocean $910,141 for the
structure’s replacement cost, which did
prevails in ADA case under the policy is grounded in the Civil
Authority provision,” the ruling said. CHUBB UNIT WINS
not include the additional cost necessary n A supermarket chain whose website is “Thus, the initial burden is on plaintiff to BUS ACCIDENT CASE
to rebuild the structure in compliance with inaccessible to a visually impaired person allege facts that would plausibly establish The Nebraska Supreme Court
the building code. did not violate the Americans with Dis- that the business interruption it suffered is unanimously upheld a ruling in
Ocean filed suit against Foy, alleging the abilities Act, which does not list websites ‘the direct result of physical damage of the a Chubb Ltd. unit’s favor over
broker had a duty to inform Ocean that it as among places of public accommodation type insured,’” the ruling said. the issue of whether it had
had insufficient law and ordinance cover- that are subject to the law, a federal appeals “However, as other courts have appropriately notified the city of
age and that Foy had been negligent. A court said in a divided opinion that over- explained, the inclusion of the modifier Omaha of a subrogation claim
jury returned a verdict largely in Ocean’s turned a lower court ruling. ‘physical’ in a phrase such as ‘direct result involving a bus accident. Chubb
favor, apportioning 25% fault to Ocean and Juan Carlos Gil, a visually impaired, of physical damage’ clearly imposes a unit Great Northern Insurance Co.,
75% fault to Foy, and the Supreme Court, long-time customer of Jacksonville, Flor- requirement that the damage actually be acting on behalf of its policyholder,
in a split decision, affirmed the ruling. ida-based Winn-Dixie Stores Inc., whose tangible in nature,” it said. the Omaha Performing Arts
website does not have compatible screen “Indeed, numerous courts around the Society, filed a subrogation action
Caesars sues for reader software, filed suit against the chain
in U.S. District Court in Miami, charging
country — including those that have
applied New York law — have routine-
against Omaha’s transit authority,
which conducts business as Metro
COVID-19 coverage it with violating the ADA, according to
the 11th U.S. Circuit Court of Appeals
ly held that the mere presence or spread
of the novel coronavirus is insufficient to
Area Transit, over $340,000 in
estimated damages in connection
n Caesars Entertainment Inc. filed a in Atlanta’s ruling in Juan Carlos Gil v. trigger coverage when the policy’s language with a 2016 motor vehicle
COVID-19 business interruption cover- Winn-Dixie Stores, Inc. requires physical loss or damage,” the rul- accident involving a city bus.
age lawsuit against more than 35 insurers The lower court refused to dismiss the ing said, in dismissing the case.
14 MAY 2021 BUSINESS INSURANCEYou can also read
