Q&A of the Week |
Rental Value Coverage for Recently Vacated Property
A Puerto Rico subscriber recently asked the following question:
Our insured owns a building that is insured for fire, theft, hurricane, vandalism, and earthquake. The policy also provides coverage for business income rental value under the same perils.
The insured's tenant decided to no longer rent this building as of October 31. On November 22, the building was vandalized, and the insured could not rent the building to another tenant. Does the coverage for business income rental value apply?
ANSWER: Adjustment of claims of this type depend on proof of what is a reasonably anticipated rental income. For example, if the building had gone unrented during the entire year prior to the loss, and the insured had no real prospects for its rental, it is not reasonable to anticipate rental income. However, since the building had been rented consistently prior to the loss, and had only recently been vacated, then it is appropriate to anticipate rental income. Rental value coverage should apply if the other elements of a business income loss are met—a necessary suspension of operations during the period of restoration caused by direct physical loss or damage. Read More |
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What's New This Week in FC&S |
Personal Umbrella Liability Policy Public or Livery Conveyance Exclusion Endorsement
Ride-sharing has become quite a large factor in today's society. There are many ride-sharing companies, and states are trying to enact legislation for the companies to provide insurance, adhere to certain background check and other requirements, and the insurance industry has its own issues. Read More |
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Litigation Watch |
Cargo Coverage under CGL Form
Artisan and Truckers Casualty Company filed a complaint for declaratory judgment asking the court to declare that Artisan did not have a duty to defend or indemnify its insured in an underlying lawsuit. This case is Artisan and Truckers Casualty Company v. Hanover Insurance Company, Case No. 14–cv–05051, 2015 WL 5081458 (Aug. 27, 2015).
Hanover insures Access America Transport. Access entered into a broker-carrier agreement with Star Way (Artisan's insured), and pursuant to that agreement, Star Way agreed to transport two backhoes belonging to CNH America. Star Way accepted the shipment and the backhoes were loaded onto a truck. The backhoes were then reportedly stolen from the premises of Star Way before they could be delivered to the customer. Hanover paid CNH for the loss and in exchange, CNH assigned its claims to Hanover. Hanover then sued Star Way and Star Way sought coverage from Artisan.
In filing a declaratory judgment action, Artisan said there was no coverage under the CGL form since the policy does not provide cargo coverage. Hanover disagreed.
Read More
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Fraud of the Week |
Vehicle Arson Fraud—Texas
AMOUNT: $20,597.08
A man called police to report the theft of his 2008 Ford F-150. The truck was found burned not far from the site of the reported theft. He filed an insurance claim and was paid $20,597.08. Read More
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FC&S Ask the Experts |
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Contact Us |
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