Hunton Insurance Recovery Blog

In the year ahead, supply chains for corporate America will likely be vulnerable to disruptions arising from multiple risks—from natural disasters to geopolitical strife—heightening companies’ dependence on insurance to manage their risks. Bloomberg Law’s recent article, “Climate, Labor Disruptions Leave Companies Reliant on Insurers” features commentary from counsel Jorge Aviles on how insurance can help shield businesses from financial losses following a supply chain-related loss. “Any business with operations that rely on a supply chain should be looking into insurance coverage to manage risks.” That safety net “gives the company the confidence that it won’t be out of pocket,” Aviles says. “It gives the employees and managers and directors of the company confidence as well, and it gives your lenders and investors confidence that the company won’t be on the hook for these massive losses.” “Companies relying on such coverage should keep in mind the tiers of suppliers,” Aviles said. “A policy might offer coverage for a direct supplier, for example, but not an indirect supplier that’s disrupted.”

In the complex world of mergers and acquisitions, it is more important than ever for businesses to consider insurance issues early and often. In a recent Bloomberg Law article, Hunton attorneys Syed S. Ahmad, Adam Lyons and Alex D. Pappas outline why businesses must fulsomely evaluate the insurance implications of proposed corporate transactions. The article describes the specific pitfalls businesses may face if they overlook insurance issues. The article then discusses the legal and practical effects of anti-transfer provisions, which could be used by insurers to deny or limit ...

Hunton special counsel Scott DeVries was quoted August 14 in a Bloomberg Law article titled “More Virus Insurance Suits Could Follow as Consolidation Fails.” The article discussed a federal panel’s refusal to centralize hundreds of businesses’ lawsuits against their insurers over pandemic-related coverage. Elaborating on the ruling, DeVries observed that “Insurance contracts are a matter of state law interpretation, so I would be surprised if there weren’t different rulings in different jurisdictions. You could see how some policyholders might have held off on ...

Last week Bloomberg Law launched an online “cyber insurance suite” authored by Hunton attorneys, Walter J. Andrews, Sergio F. Oehninger, and Patrick M. McDermott. The online suite, available here and to Bloomberg subscribers, covers all aspects of cyber insurance, including identifying the major cyber risks and liabilities, applying for and obtaining cyber insurance coverage, and submitting claims under cyber coverages. It also contains an overview of case law evaluating coverage for cyber liabilities under traditional insurance policies and under cyber specific ...