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Toxic Mold and Property Damage Claims in Florida

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Insurance Claims and Lawsuits Involving Mold Are Particularly Complex – Mold Insurance Expert Witness When a tornado or hurricane strikes a community , it’s fairly obvious to ascertain how and when damage occurred to property in the path of the storm. Fire, theft, and floods are also causes of damage that can be easily observed, traced to a source, and are covered consistent with the related policy coverage language. Mold, however, is a different issue. It is often difficult to ascertain the cause of mold and how or when it originated. Many homeowners policies cover mold damage if it was caused by a “covered peril.” Absent additional coverage language, a homeowner’s policy may not cover damage caused by mold. If the mold was caused, for example, by a preventable water leak or high humidity – an issue will be raised in adjusting the claim as to coverage. Sometimes in new construction mold can actually enter a home in the form of defective or tainted building materials ...
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D&O Insurance Litigation Continues to Rise

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The D&O insurance industry has seen a significant increase in claims involving securities class action suits in recent years, as we have written about in the past. A study published by Advisen provides insight into some of the claims trends that affected the industry for Directors & Officers insurance in 2016, as summarized below. Trend Toward Suing Smaller Companies In the past, large companies were more likely to be hit with a securities class action lawsuit. In fact, the bigger the company (as measured by its market capitalization), the likelier it was to face a securities lawsuit. More recently, this trend has changed. Increasingly, smaller companies, which used to be perceived as less risky from a litigation standpoint, are facing securities suits. One reason for the trend to target smaller firms is attributed to the entrant of new law firms, which are building their practice based on the initial pursuit of smaller entities. These smaller lawsuits can be less...
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Soot, Smoke and Ash Insurance Claims Increase During Wildfire Season

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With wildfire season here, smoke and ash claims can arise under an insured’s homeowners and commercial property policies. For fires that occur close to a property, soot claims can arise as well. Wildfires and the associated risks remain a national concern. In April, a state of emergency was declared in Florida as over 100 active fires burned across the state. The number rose to 142 fires in May. While East Coast fires are currently under control, wildfires continue to rage out West, burning through Arizona, Nevada, Montana, New Mexico, Oregon, Washington and California and triggering evacuations in many areas. Across the nation, homeowners and commercial businesses face the threat of damaged property and significant losses. Since the beginning of the year, an estimated 4.4 million acres have already been burned by wildfires in the Western U.S. This reflects a 34 percent increase compared to 2016 and is significantly above the 10-year average of 3.1 million acres. Furt...
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Homeowners Versus Flood Insurance Policies

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As the 2017 hurricane season gains strength following Hurricane Harvey in Texas, residential and commercial property owners along the Gulf of Mexico and in other coastal or low-lying regions across the country are likely to be double checking their insurance coverage. Damage caused by flooding is not typically covered by homeowners and renters insurance policies. Rain-related damage may, however, be covered. Property owners who hold a mortgage on a home or commercial building located in certain zones at high risk of flooding are required by law to purchase flood insurance, under Congressional rules applicable to federally regulated or insured lenders. The National Flood Insurance Program (NFIP) is a federal program that offers flood insurance at favorable market rates to homeowners and other property owners. According to the NFIP, flood insurance covers direct physical loss caused by flooding conditions. A flood is considered to be “an excess of water on land that is normally...
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How a Managing General Agent Business Model Works

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An independent insurance agent has many reasons to work with a managing general agent, or MGA. From the requirement of expertise to the availability of a particular product or the competitive price, MGAs provide a variety of services and competitive advantages to independent agents. In fact,  Insurance Journal  argues there are at least 50 possible reasons for partnering up with an MGA. To get a better understanding of how the managing general agency business model works, and how to benefit from working with an MGA, let’s first look at what precisely a managing general agent does. What is a Managing General Agency? The  International Risk Management Institute  (IRMI) has a straightforward definition for managing general agent: “a specialized type of insurance agent/broker that, unlike traditional agents/brokers, is vested with underwriting authority from an insurer.” As an agency, an MGA has granted authority to perform specific functions that are ordi...
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