This is a trick question. Investigative costs that are a necessary part of defending an officer, director or the Company that has been sued, are generally insured under Directors and Officers (D&O) policies, subject of course to the insurer’s agreement that such costs are reasonable and necessary for a proper defense of covered allegations.  However, when you are referring to internal investigations or governmental or regulatory investigations that occur prior to any charges being levied—the answer is less clear, and sometimes “no”.

After years of declining cost, Workers’ Compensation expense is poised for a jump.  As a result of escalating claims costs, fueled by medical inflation and rising wage replacement costs, Workers’ Compensation insurance rates are increasing.

We live in a world where leading U.S. manufacturers often manufacture very little. They remain masters of design, quality control and distribution.  However, to remain competitive, the actual manufacturing process is outsourced to offshore companies that can deliver at lower costs.

The policies and procedures used in the administration of lenders’ forced placed insurance have recently received increased scrutiny by regulators. While most of the attention thus far has been focused on lenders that have subsidiaries that actually underwrite the forced placed coverage, many of the issues (e.g. unreasonably high rates, communication breakdowns with the borrower and incorrect placement issues) could also give rise to additional regulation and lawsuits against lenders that outsource forced placed services.

Establishing the value of a personal injury claim is not an exact science, but when an accident with the same scenario occurs twice, only a few short days after one another, you can be sure that the claim value will substantially increase if the defect that caused the problem isn't mitigated.

It is good risk management practice for property owners and managers to prepare for any and all potential losses. Your property policy covers you for physical damage and/or loss of use to buildings and personal property that you own, lease or are legally liable for, if caused by a covered peril.

Many educators’ legal liability (ELL) insurance carriers are amending their policy to specifically exclude acts of sexual/physical abuse and molestation. Underwriters contend that the ELL policy form was never designed to cover claims alleging bodily injury, and that the additional exclusion merely clarifies the policy’s intent that such events are more appropriately covered by a school’s general liability policy. However, such exclusionary wording could have unintended consequences for your ELL policy.

I’m sure you have seen and heard the many stories of business owners who suffered uninsured losses due to the power outages caused by the recent storms in the Northeast. Downed trees and limbs were the primary cause of failed power lines for millions.

As you may be aware, a recent news article noted that a large multi-national bank is being sued for $15 million for negligence following a robbery and homicide at a vacant building owned by the bank through foreclosure. Liability coverage for bank owned/foreclosed properties is handled quite differently from bank to bank, and coverage limits available may be insufficient to cover this type of catastrophic liability claim.

New England winter storms can be messy, unpredictable, and prolonged. Injuries caused by slipping and falling on snow and ice can be expensive, disruptive, painful and sometimes even tragic for property owners and managers. A proactive plan designed to identify, control and eliminate these losses is the best way to reduce or prevent these accidents.