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September 24, 2015  

 
 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
 
 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
 
 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
 
 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
 
   
 FC&S Ask the Experts
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?

Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).

Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.

Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here.
 
 Maximize Your FC&S
 Online Subscription!
FC&S editors regularly conduct web-based demos of the service. Feel free to contact Christine Barlow, cbarlow@alm.com, to set one up! They only take 30 minutes, a small investment of time that will help you learn all that FC&S Online has to offer.
 
 Contact Us
As always, your comments and questions are welcome.

Contact us at:
FC&S Department
Phone: 800-543-0874
Fax: 859-692-2293
Email: eAlerts@nuco.com
The Zalma Insurance Claims Library
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Insurance Claims: A Comprehensive Guide
The only source you'll need to successfully handle insurance claims from start to finish. More Info
Construction Defects Coverage Guide
Your single-source for identifying, insuring, investigating, prosecuting, and defending cases that result from construction defect claims. More Info
Mold Claims Coverage Guide
This guide will allow you to handle mold insurance claims and litigation resulting from mold or fungi related disputes with confidence. More Info
For more information about these titles Click Here
 
FC&S Team
Kelly Maheu, J.D.
Publisher
  Diane W. Richardson, CPCU
Consulting Editor
Christine G. Barlow, CPCU
Managing Editor, FC&S
  Diana B. Reitz, CPCU, AAI
Consulting Editor
David D. Thamann, J.D., CPCU, ARM
Managing Editor, FC&S Bulletins
  Emily Brunner
Online/Print/Production Editor
Susan L. Massmann, CPCU
Managing Editor, Electronic Publications
  Tosha Brinkman
Marketing Manager
Barry Zalma, Esq., CFE
Contributing Editor
  Donna Cozatchy
Creative Director

 
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