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Finding the Familiar in Contingent Coverage Provisions
Contingent business interruption insurance found in many commercial property contracts is business interruption insurance with a single modification: While business interruption is triggered by damage to property of the insured, which leads to an interruption of the insured's business, contingent business interruption is triggered by damage to the property of a specified third party (such as a supplier to the insured, or a receiver of the insured's goods or services), which leads to an interruption of the insured's business. Each of the other policy requirements for business interruption coverage ' e.g., that the damage arise from an insured peril, that there be a “necessary interruption” or suspension of the insured's business, that there be a compensable “actual loss,” etc. ' apply with equal force to a claim for contingent business interruption. The same is true of other forms of contingent coverage extending the time element provisions of a property insurance policy. For example, contingent extra expense incorporates the requirements found in the extra expense provision of the policy, save the one requirement that is explicitly altered ' ownership of the property damaged.
Brokers and insureds sometimes create controversies by failing to follow the bedrock principle that contingent coverage is predicated on the same requirements as the time element provision it operates to extend. Other questions that can arise concern the specific contours of the extension embodied in the contingent coverage provision ' i.e., does the third party entity that sustained property damage fall within one of the categories of third parties specified in the contingent provision? Disputes in both areas can be avoided by applying the predicate that each form of contingent coverage incorporates the requirements of the provision it extends, except to the extent that the contingent coverage specifically alters the requirement with respect to ownership of the property damaged.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability
This article explores legal developments over the past year that may impact compliance officer personal liability.