Earlier this month, Canada’s transport minister announced that a drone had collided with a commercial aircraft, the first confirmed collision of its kind in North America. Thankfully, the aircraft sustained only minor damage and was able to land safely. But this recent incident, which many commentators believed was inevitable given the proliferation of consumer and commercial drones, highlights the potential risks associated with drone operations. Continue Reading Are Your Drone Operations Covered by Insurance?
On October 23, 2017, the Federal Trade Commission issued a policy enforcement statement providing additional guidance on the applicability of the Children’s Online Privacy Protection Rule (“COPPA Rule”) to the collection of children’s audio voice recordings. The FTC previously updated the COPPA Rule in 2013, adding voice recordings to the definition of personal information, which led to questions about how the COPPA Rule would be enforced against organizations who collect a child’s voice recording for the sole purpose of issuing a command or request. Continue Reading FTC Issues Policy Statement on COPPA and Voice Recordings
Hurricanes Harvey and Irma have devastated portions of Texas, Louisiana and Florida. For retail insureds in particular, the losses due to property damage and business interruption will be staggering. In an article published September 12, 2017, in South Florida’s Daily Business Review, Hunton Insurance lawyers Walter Andrews and Andrea DeField explain why it is critical that policyholders act fast to maximize insurance recovery for their hurricane-related losses. They also provide a checklist to guide policyholders through the claim process and to ensure maximum recovery for any property damage and business interruption losses. As Andrews and DeField explain, business interruption and related coverage endorsements may cover loss resulting from (1) an inability to open for business; (2) reduction in business income when the business remains open but cannot operate at full capacity; (3) civil authority orders barring access to an insured business; and (4) service and utility outages effecting business interruptions — an important coverage in light of Florida’s ongoing power outages.
Coastal areas in Texas have already begun evacuating as Hurricane Harvey heads for the Gulf Coast. Weather experts anticipate that the windstorm will reach Category 3 or Category 4 status by the time it makes landfall on the Texas coast late Friday night or early Saturday morning, making it the first Category 3+ storm to make landfall in the United States since Hurricane Wilma hit South Florida in October 2005. Continue Reading Preparing for Hurricane Harvey: Insurance May Help Weather the Storm
Commercial general liability policies typically provide coverage to insureds for losses resulting from property damage caused by an “occurrence,” usually defined in the policy as “an accident, including continuous or repeated exposure to substantially the same harmful conditions.” Specific product recall insurance policies and contamination policies also typically require that the insured’s loss be caused by accidental or unintentional contamination or impairment. In the context of product recalls, however, the exact cause of damage or contamination may be unknown. This creates uncertainty, and in turn, a coverage dispute over whether the cause of damage was indeed accidental, and thus a covered “occurrence” or “event” under the policy. Continue Reading Fear of the Unknown: Insurance Coverage for Recalls Where the Cause of Loss is Unknown
As reported on Hunton’s Employment and Labor Law Perspectives blog, over the past eight years, the NLRB has been unusually aggressive with its policymaking. Hunton & Williams’ Labor and Employment partners Ryan A. Glasgow and Kurt G. Larkin discuss the current state of labor law, the NLRB and how it might change under the current administration.
Private equity investors face unique challenges when procuring or renewing their liability insurance programs. For example, investors typically must complete lengthy applications or sign warranty and representation letters from their prospective insurers that inquire into knowledge by any potential insured as to any acts or omissions that could potentially give rise to a claim. These overly broad, and often vague, inquiries are problematic for private equity investors who would theoretically have to interview every employee, manager or director at every subsidiary, fund and portfolio company (if insureds) to discern whether any person has knowledge of such an act or omission. Hunton insurance coverage attorneys Syed S. Ahmad and Andrea DeField recently authored an article in Bloomberg Law Securities Regulation & Law Report in which they address this issue and others as part of their Top 5 Coverage Issues Private Equity Investors Should Consider.
The FDA has announced that it will officially delay the compliance date for its Menu Labeling Rule (the “Rule”) to May 7, 2018, in order to consider how to further reduce the regulatory burden or increase flexibility while continuing to achieve regulatory objectives. Among other concerns, the FDA notes that retailers have raised concerns that the Rule lacks flexibility to permit the provision of meaningful nutrition information to consumers in innovative formats. Continue Reading FDA Pushes Back Compliance Date for ACA Menu Labeling Rule
Product recalls are on the rise in many industries. As regulatory and consumer protection standards get tougher, product supply chains are becoming more complex. This increases the risk of errors, defects and contamination at all levels of operation. Too often, these problems do not manifest themselves until after a product hits the market. All of this can lead to staggering expenses for food and product manufacturers facing the risks and realities of product recalls. Continue Reading Product Recalls: Keeping Your Insurance Coverage Intact
Providers of technology products and services are consistently innovating to grow their offerings to retailers. These new products and services present significant opportunity for retailers to more effectively reach customers, generate sales and grow revenue. But while these new offerings present a great tool to grow sales in this challenging market, they also can present significant cybersecurity risks. Continue Reading Navigating Cybersecurity Insurance in Technology Transactions