Hunton Insurance Recovery Blog

In their new article for FC&S Legal, Hunton & Williams attorneys Lorie Masters, Syed Ahmad, and Jennifer White discuss critical questions that must be answered when assessing and protecting against cyber risk in the financial sector.  The article is available here.

A recent decision highlights the need for businesses to carefully consider the applicability of insurance coverage across borders. In this case, the owners of an Idaho restaurant traveled to Thailand for business related to the restaurant. While in Thailand, thieves stole uniforms and decorations from the owners, who then submitted an insurance claim. The insurer denied the claim because the policy only covered property within the "coverage territory," which was limited to the U.S., its territories, and Canada.

In prior posts (here and here), we have highlighted some potential coverage concerns for losses arising out of the use of blockchain technology. However, as previously reported, Blockchain technology’s relevance to insurance is not limited to coverage for losses. In fact, earlier this week, the Blockchain Insurance Industry Initiative known as B3i expanded its membership to include heavyweight insurance companies like Chubb, AIG, and Gen Re as well as notable insurance and reinsurance brokers like Marsh, Guy Carpenter, Willis Re, and JLT Re.

In an article in the September issue of ABA Business Law Today, Hunton & Williams attorneys Lorie Masters, Sergio F. Oehninger, and Patrick McDermott discuss the increasing use of blockchain technology, the security of the technology, and insuring against the relevant risks. As they explain, the "potential disruptive uses of blockchain technology in the marketplace have been compared to that of the Internet." Thus, businesses across industries should consider their insurance would cover risks arising out of the use of blockchain technology. The authors point out that current ...

Corporate policyholders should carefully consider insurance coverage implications when structuring mergers, acquisitions, or other transactions that may impact available insurance assets. A New Jersey federal court recently granted summary judgment for a surviving bank asserting coverage rights under a D&O policy issued to an entity that dissolved in a statutory merger, based in part on the wording of the parties' merger agreement structuring the transaction in accordance with the New Jersey Business Corporation Act ("NJBCA").

Corporate policyholders should carefully consider insurance coverage implications when structuring mergers, acquisitions, or other transactions that may impact available insurance assets. A New Jersey federal court recently granted summary judgment for a surviving bank asserting coverage rights under a D&O policy issued to an entity that dissolved in a statutory merger, based in part on the wording of the parties' merger agreement structuring the transaction in accordance with the New Jersey Business Corporation Act ("NJBCA").

Obscured by the recent hurricanes ravaging the Caribbean, Florida and Texas, Mexico suffered its own natural disaster earlier this week with a 7.1 magnitude earthquake.  Our hearts and prayers go out to those affected by the quake.

In an article that first appeared in Electric Light & Power, Hunton & Williams attorneys Sergio F. Oehninger and Paul T. Moura discuss the growing Electric Vehicle (EV) industry and the risks posed due to the consequential strain on the power grid. As they explain, demand and investment in EVs will likely spur greater demand for supercharging stations that consume significant amounts of electricity. Urban centers and real estate owners are also expected to increase the supply of these stations in order to make these areas more attractive and accessible to EV owners, drone operators, and autonomous vehicle fleets. All of this growth will put increasing demands on electricity supply that can be difficult for businesses to control, leading to grid outages that can cause an interruption in business operations, an inability to access or restore system data, and significant losses of business income. All of this raises the question—Can businesses count on their insurance coverage to respond to the risks posed by EVs?

Congratulations to Hunton & Williams insurance recovery lawyer, Patrick McDermott, on his confirmation by the DC Bar Foundation’s Board of Directors to the organization’s Young Lawyers Network Leadership Council.  The DC Bar Foundation launched the Young Lawyers Network Leadership Council in November 2011 as an opportunity for younger attorneys to further the goal of access to justice within the community.  Members serve as ambassadors in order to promote DCBF’s mission and programs and to help raise additional resources to support local legal aid organizations.  Among ...

Does the term "wrongful act" always require that the conduct at issue be "wrongful"? In at least one D&O insurance policy, the answer may not be as clear as it seems. A federal district court in Texas recently denied an insurer's motion to dismiss a company's coverage claim for nearly $5 million in costs the company incurred defending a statutory appraisal lawsuit filed by disgruntled shareholders, citing the D&O policy's "terribly" written definition of "wrongful act," which may have been written so broadly that it provides coverage for "acts" that are not actually "wrongful."