Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Key Insurance Coverage Considerations in the Wake of Superstorm Sandy
Superstorm Sandy ' a post-tropical storm with Category 1 hurricane strength ' struck the United States with a liquid fist on Oct. 29. Sandy devastated the U.S. Mid-Atlantic region and affected at least 24 states with gale-force winds and heavy rains that reached far inland causing flooding, and blizzard conditions in West Virginia. The storm, which was the confluence of an Atlantic Ocean hurricane with two winter weather systems, hit shore five miles southwest of Atlantic City, NJ, with a record storm surge. Although the center of the storm missed New York City, its storm surge flooded streets, tunnels and subway lines in Lower Manhattan, Staten Island, Coney Island, and other areas of the city. The storm caused severe and widespread destruction of property in New York, New Jersey and other states, and left millions without power or transportation in its wake. Even before Sandy made landfall, the storm caused major disruptions as a result of preparedness actions taken across the East Coast, including mandatory evacuations, suspension of mass transit systems, flight cancellations, and closures of airports, businesses and entertainment venues ' even the New York Stock Exchange. There is no doubt that picking up the pieces in Sandy's wake will be challenging. Although the full extent of damage and business disruption will not be assessed in concrete dollar terms for many months, early estimates predict that Sandy has caused at least $20 billion in insured losses in addition to economic/business interruption losses in excess of $50 billion, which would rank Sandy as the fourth-costliest catastrophe in the United States. See Eqecat sees Sandy insured losses up to $20 billion in U.S., Reuters (Nov. 2, 2012).
Following Sandy, the regrettable but inevitable question is not whether, but where and when, the next costly natural disaster will strike ' be it a hurricane, typhoon, cyclone, tornado, earthquake, tsunami or other natural disaster. Insurance can play an important role in helping businesses and individuals weather the financial storm that inevitably follows the natural one. Much of the property damage and business interruption loss suffered on account of Sandy and other natural disasters is insured. Importantly, businesses often have insurance not only for property damage losses, but also for economic losses arising from business interruption, including interruption incurred as a result of actions of civil authorities (such as the evacuations, mass transit suspensions and airport closures) and for extra expenses incurred to minimize or avoid business interruption. Even if the storm did not damage their own property, many businesses will have sustained losses because of damage to the property of others, including important suppliers, customers and other business partners, damage to infrastructure, transit interruption, power outages, interrupted gas and water services and/or disruption of various other forms of production and support systems. Many businesses also will incur substantial expenses to return to normal operations. Even businesses located in areas far outside the storm's path have likely suffered losses that may be covered by insurance given that the storm conditions impacted such a broad area and affected goods traveling by sea and other halted means of transportation.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.
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.