Representations and warranties insurance (RWI) has become a fixture in today’s M&A landscape, offering buyers and sellers a mechanism to shift risk and streamline negotiations. Yet, as the RWI market matures, certain recurring disputes highlight the friction between deal economics, coverage intent, and post-closing realities. One common dispute arises when a pre-closing breach continues after the Closing date, raising the thorny question: when does loss stem from a covered pre-closing breach, and when is it attributable to post-closing conduct that falls outside the policy?Continue Reading The Breach That Won’t Die: Navigating Post-Closing Conduct and RWI Coverage Disputes
The New Frontier: Data Centers, AI & Insurance Implications
Amazon’s recent announcement to invest at least $20 billion in cloud computing and AI data center campuses across Pennsylvania—a record‑breaking private investment in the Commonwealth—marks a turning point in digital infrastructure build-out. Spanning sites in Luzerne and Bucks counties, the project promises 1,250 full‑time roles and thousands more in construction, while pairing with high‑demand energy sources like a nearby nuclear plant. The rapid expansion of AI data centers poses a unique set of risks—ranging from construction hazards to power and environmental challenges— and highlights the need those involved in these large infrastructure projects to close potential insurance coverage gaps and to explore alternative risk transfer solutions.Continue Reading The New Frontier: Data Centers, AI & Insurance Implications
The Increasing Importance of Political and Marine/War Risks Insurance to Manage Risks From Global Unrest and Disruptions to the International Trade System
Today, large swaths of the globe stand at the brink of political violence and armed conflict with some areas in active warfare. Russia’s ongoing war in Ukraine, Israel’s armed conflicts against Hamas in Gaza and Hezbollah in Lebanon, and the simmering tensions regarding China’s territorial claim to Taiwan and other disputed territories in the South China Sea are just a few international conflicts that grab daily international headlines. Turmoil in the global markets stemming from the imposition of tariffs between the U.S. and some its trading partners has raised concerns of a global recession that could further destabilize governments and currency in emerging markets. But in this period of uncertainty in the international order, companies with substantial international investments or operations may face increased risks of expropriation, currency instability and political violence in jurisdictions previously thought stable. Indeed, insurance company Allianz considers about 100 countries to be at “high or extreme risk of civil unrest.” Continue Reading The Increasing Importance of Political and Marine/War Risks Insurance to Manage Risks From Global Unrest and Disruptions to the International Trade System
America’s Aging Dams and Other Infrastructure is an Urgent Insurance Coverage Issue
Natural disasters are becoming more frequent, more severe, and more destructive. No part of the United States is entirely immune from some combination of tornadoes, fires, droughts, earthquakes, freeze events, and hurricanes. Indeed, 2024’s “extraordinary” hurricane season saw Hurricanes Helene and Milton devastate swaths of the Southeastern United States from Florida to North Carolina.[1] This trend has continued in the early days of 2025 with wildfires in California and winter storms in the South and along the East Coast causing devastation, supply chain disruptions, and, reportedly, tens of billions of dollars in insured losses.Continue Reading America’s Aging Dams and Other Infrastructure is an Urgent Insurance Coverage Issue
North Carolina Supreme Court Unlocks the Door to COVID-19 Business Interruption Coverage, Holding that Pandemic-Era Restrictions on Use of Property Constitute “Direct Physical Loss” to Property
Last week, the North Carolina Supreme Court issued its long-awaited ruling in North State Deli, LLC v. The Cincinnati Insurance Company, siding with a group of North Carolina restaurants that sought business interruption insurance for losses they sustained because of the COVID-19 pandemic. Specifically, the court held that those restaurants sustained “direct physical loss” to property, as that phrase is used in their commercial property policies, when COVID-19 government orders restricted the restaurants’ use of and access to their property, resulting in the suspension of their operations and the loss of income. In reaching this holding, the Supreme Court of North Carolina joined the Supreme Court of Vermont as the only other state supreme court to have ruled in favor of policyholders on the question of COVID-19 business interruption insurance coverage. Continue Reading North Carolina Supreme Court Unlocks the Door to COVID-19 Business Interruption Coverage, Holding that Pandemic-Era Restrictions on Use of Property Constitute “Direct Physical Loss” to Property
Tips for Pursuing Insurance Claims and Disaster Relief Funding in North Carolina After Hurricane Helene
Hurricane Helene made landfall in Florida on September 26, 2024, eventually making its way up to western North Carolina where it caused unprecedented damage. The estimated costs associated with these damages grow daily, with AccuWeather currently estimating losses between $145 and $160 billion. Earlier this week, we issued an alert with general tips policyholders should consider when pursuing insurance claims for hurricane-related losses. As damage reports continue to come in from portions of western North Carolina that have been cut off from regular communications, we are updating our guidance for North Carolina policyholders.Continue Reading Tips for Pursuing Insurance Claims and Disaster Relief Funding in North Carolina After Hurricane Helene
Tips to Maximize Insurance Recoveries for Hurricane Helene Property Damage and Business Interruption Losses
RELATED UPDATE: Tips for Pursuing Insurance Claims and Disaster Relief Funding in North Carolina After Hurricane Helene (October 3, 2024)
Hurricane Helene made landfall on Thursday, September 26, 2024, carrying catastrophic 140 mph winds as the first known Category 4 storm to hit Florida’s Big Bend region since records began in 1851. By Friday, Hurricane Helene’s effects could be felt through Georgia, South Carolina, North Carolina, Tennessee, and Virginia, with numerous fatalities and significant property damage and power outages reported across the entire southeastern United States. Flooding from the storm resulted in highway and road closures throughout the region, including Interstate 40 in North Carolina, and multiple dams in Tennessee and North Carolina were on the brink of failure before stormwaters began to subside.Continue Reading Tips to Maximize Insurance Recoveries for Hurricane Helene Property Damage and Business Interruption Losses
Steps for Companies to Maximize Potential Insurance Recovery After the EPA’s Recent PFAS Designation
On April 19, 2024, the U.S. Environmental Protection Agency announced the designation of two per- and polyfluoroalkyl substances (PFAS)—perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) and their salts and structural isomers—as hazardous substances under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).[1] In its designation, the EPA has identified over 85 industries it believes are most likely to be directly or indirectly affected by the designation. Continue Reading Steps for Companies to Maximize Potential Insurance Recovery After the EPA’s Recent PFAS Designation
Insurance Recovery for Businesses Impacted by the Francis Scott Key Bridge Collapse
On March 26, a containership struck the Francis Scott Key Bridge in Baltimore, Maryland, resulting in the collapse of the highway infrastructure and tragic loss of life.[i] As communities grieve the loss of their loved ones, businesses around the world are grappling with the economic fallout, including significant supply chain disruptions. The closure of I-695, which provides an alternate route for hazardous materials and oversized vehicles that are prohibited from going through the Baltimore Harbor Tunnel, has created a gridlock for companies with distribution warehouses nearby.[ii] The many ships stuck at the Port of Baltimore blockage, which is the top port in the nation for automobile shipments, is likely to create a ripple effect for other ports worldwide.[iii]Continue Reading Insurance Recovery for Businesses Impacted by the Francis Scott Key Bridge Collapse
The Appraisal Clause: What It Is, and When to Enforce It
The Appraisal Process
Even when an insurer agrees to cover an insurance claim, disputes often arise between the insurer and the insured as to the valuation of the loss, particularly for claims under commercial property and business interruption policies. In these circumstances, policyholders should consider whether and to what extent the dispute could be resolved through an appraisal process before resorting to litigation.Continue Reading The Appraisal Clause: What It Is, and When to Enforce It