No one ever wants to see a tragedy, and no one wants to see injuries and loss of life such as we are seeing in the wake of Wednesday’s massive explosion at West Fertilizer Co. in central Texas. Our thoughts are with those who have lost loved ones or suffered injury or destruction of property. While insurance is of no solace in these circumstances, it can be a key factor in recovery from such disasters. Policyholders must act promptly to protect their rights and to obtain the full extent of their coverage.
Companies whose business includes large-scale industrial operations should make sure that they have appropriate liability insurance to cover claims brought by those alleged injured from their operations. However, they also should make sure that they have the following types of insurance coverage, which may be crucial not only to their recovery, but also to better ensure jobs for their employees. Continue reading “After Large-Scale Disaster, Serious Insurance Issues Loom for Texas Fertilizer Plant”
James S. Carter
Many companies at this time of year are preparing to renew their product liability coverage, which is supposed to provide security for products lawsuits. The insurance policy that a company is considering for its products liability coverage, however, may leave the amount of coverage for product liability losses up to chance because of an issue that arises in insurance coverage litigation, particularly those involving product liability claims, known as the number of “occurrences.” Simply put, the number-of-occurrences issue asks whether product liability claims arise from one occurrence or more than one occurrence. Because the amount of coverage or any deductible is typically stated as a dollar amount “per occurrence,” the answer to that question can leave a policyholder with an abundance of coverage, or leave it essentially self-insured.
The number-of-occurrences issue can have a particularly profound effect on insurance coverage in the product liability context because of the potential for numerous claims. If, for instance, a policy has a per-occurrence deductible, and each product liability claim is deemed to be a separate occurrence, the total amount of deductibles could exceed the total amount of coverage. Alternatively, if product liability claims are grouped together as one occurrence, then only one deductible would have to be paid, thus preserving coverage. Continue reading “Renewing Product Liability Coverage? Consider the Number of Occurrences”
I presented at the @SeminarGroup conference in Santa Barbara, California on February 8, 2013 about insuring hydraulic fracturing (“fracking”) projects.
The natural gas and oil extraction and production technique known as fracking is a hot-button issue in today’s political landscape and in the media. Estimates suggest that more than a quarter of the United States’ natural gas supply is derived from shale bed fracking. As evidenced by the recent Presidential campaigns, many Americans view fracking as an economic catalyst that may create jobs domestically and help reduce the country’s reliance on foreign energy supplies. While this extraction and production technique has been utilized in the United States since the 1940s, it has recently gained additional attention from environmental groups claiming environmental harm as the extraction moves into the more densely populated areas surrounding the natural-gas rich Marcellus Shale in the northeast and the huge Monterey shale that lies under California’s Central Valley at San Benito and Monterey counties. Continue reading “Insurance Coverage for Fracking Claims”