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Applying New York law, the United States District Court for the Southern District of New York has held that an SEC investigation of the insured company did not constitute a “Securities Claim,” where the term expressly excluded investigations.
Hertz Global Holdings, Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, 2021 WL 1198802 (S.D.N.Y. Mar. 30, 2021). The court likewise held that the investigation did not constitute a “Claim” against Insured Persons, notwithstanding cooperation of former executives in the investigation.
In 2013, a securities class action was filed against the insured car rental company. The next year, the company received an SEC Formal Order of Investigation providing that the SEC had “information that tends to show” securities law violations. The company noticed the class action and investigation under a policy that afforded coverage for “Securities Claims” against the company
Claims Journal
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For an incredible 10-day period in mid-February, Texas was battered by a brutal winter storm bringing snow, ice, and record-low temperatures. Millions of Texans were without power and water for days. These conditions forced thousands of Texas businesses to close during the storm. Many of these businesses also sustained property damage from pipe bursts and resulting water discharge. The property insurance claims have already started to come in. Some believe the storm will be the largest insurance event in Texas history.
Unlike most states, where power grids are interconnected, Texas has its own intrastate power grid that supplies power to 90% of the state, according to a report in the Texas Tribune. That grid is operated by the Electric Reliability Council of Texas (“ERCOT”).
Commercial Property Insurance Coverage for Texas Winter Freeze Losses claimsjournal.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from claimsjournal.com Daily Mail and Mail on Sunday newspapers.
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As the incidences of infection exponentially grow, we anticipate that many businesses, particularly service industries, would likely face a surge of claims from clients, members of the public, and their employees for the negligent transmission of COVID-19 or the failure to adequately protect them from contracting COVID-19. In turn, these businesses would look to insurers for coverage for COVID-19 or other communicable infection-related claims.
However, to avoid coverage for claims for the transmission of, or exposure to communicable diseases, many insurers have included a communicable disease or virus exclusion in a standard homeowner policy or commercial general liability policy. The language and clauses used in those exclusions are key to an understanding of whether coronavirus related losses will be covered under these policies.