News & Resources

Directors and officers liability insurance, often referred to as “D&O” insurance, is designed to protect the personal assets of the company’s leaders and comes into play if they are personally sued for actions taken on behalf of the company.  As Miami insurance law attorneys, we are experienced in representing our clients in Directors and Officers Liability Insurance Disputes.  Company leaders can be sued for a variety of reasons ranging from allegations of financial mismanagement to negligent business decisions, and are frequent targets when shareholders, customers, vendors, suppliers, employees, creditors and other parties are displeased with the company’s actions. Individual Director and Officer Coverage and Corporate Entity Coverage A typical D&O policy includes several elements (referred to as “sides”).  Side A protects a corporation’s directors and officers for loss arising from claims against them when the company cannot indemnify them.  Side B reimburses the company when it indemnifies the individuals.  Side C, also known as “entity coverage,” eliminates disputes over coverage allocation when both the directors and officers and the insured organization are named as co-defendants in a securities lawsuit. Claims That May Target Company Leadership Business leaders can be held responsible for a company’s failure to comply with regulations and to provide a safe and secure workplace.  Additionally, if a company is found liable for losses because of operational failure and mismanagement, directors and officers may be exposed to liability as well.  Types of claims include: Shareholder suits over company or stock performance; Creditor or investor suits over mismanagement or […]

Most homes have homeowners policies covering wind damage, but insurers have been steadily increasing hurricane wind coverage deductibles and imposing other sometimes draconian policy limitations.  In addition, homeowners’ policies do not cover flood, earthquake, tree removal (unless the tree damages the house) or food spoilage from power failures.  As a Miami insurance recovery attorney can tell you, in the wake of a storm, homeowners must be vigilant with their insurance companies throughout the claims process to ensure that they receive a full and fair settlement.  Your claim is unique and should be treated as such by your insurance company.  Here are some important tips and considerations as you go through the claims process.    Tips for Filing Flood and Wind Claims First, If you have a legitimate claim, do not hesitate to file it.  Insurers should not raise your rate for filing a claim or fail to renew your policy as a result.  Second, once your claim is reported, be sure to make a note of your claim number.  Third, maintain receipts for any expenditures related to immediate repairs you had to make to secure your home or any living expenses (hotel, meals) if you could not return to your home following the storm.  These may be reimbursable under the “Additional Living Expense” portion of your homeowners’ policy.  Forth, many insurance companies have repair programs in which they offer to send out one of their approved contractors to estimate your property damage.  While you may wish to obtain an estimate […]

New Jersey has joined the majority of states by supporting the federal “Daubert standard” for assessing the reliability of expert testimony.  In a recent decision, the New Jersey Supreme Court upheld the “gatekeeper” role of judges, allowing them to prevent juries from hearing scientific evidence the courts deem unreliable.  As a Miami insurance law firm, we stay up-to-date on legal developments that impact our practice.  Expert witnesses are the lynch pin of a product liability case, so the Court’s decision clarifying the standard for admissibility of expert testimony will have a huge impact on product liability litigation in the state.  In re Accutane Litigation Decision  The plaintiffs alleged a causal condition between the acne medicine Accutane and Crohn’s Disease, a gastrointestinal illness, despite the fact that all of the epidemiological studies concluded that there is no causal relationship.  At trial, plaintiffs intended to call experts to dispute the conclusions of the studies and to assert the contrary view, “relying on other facts and forms of data.”  Defendants challenged the methodology as unreliable and sought the exclusion of the expert’s testimony.  The trial court agreed, but the Appellate Division reversed the decision, concluding that the experts employed a “sound methodology” and simply interpreted the data differently than defendants’ experts.        In a unanimous decision, the Supreme Court upheld the trial court’s exclusion of plaintiffs’ expert testimony and clarified its standard for assessing the reliability of expert witnesses.  The Court expects trial courts “to assess both the methodology used by the expert […]

As Miami Disability Insurance Lawyers, we stay up-to-date on trends in the area of Disability Benefits. Several topics that have been gaining attention include employee engagement,  automation, and marijuana.  Employers are grappling with these issues, all of which are likely to impact disability insurance benefits for employees.  From increasing awareness of mental and behavioral health to learning to embrace technology while still maintaining a human connection between employer and employee and understanding the interplay between state and federal laws on medical marijuana use in the workplace, the needs and concerns of employees are being heard and addressed in new ways, while employers reap the benefits of employee loyalty and commitment. Employee Engagement Increasing employee engagement and participation with group benefit programs is a hot button for many employers.  This is not surprising considering that employee benefits are often an employer’s second largest expense, after labor.  Employers are exploring ways to increase productivity, while generating loyalty and commitment.  Examples include on-site day care, financial wellness, and other initiatives to help employees focus on work and reduce stress.  Incorporating systems and strategies for addressing employee mental health and well-being is emerging as a key component of employee engagement.    Automation New technologies are poised to radically change areas of labor, including disability programs. At the same time, however, employers and employees are concerned about losing a sense of human connection to the workplace.  Employers are responding by offering customized benefits, including enhanced disability programs, and introducing automated and digital technologies to the […]

Floridians are well aware of the importance of homeowners’ insurance.  Planning ahead for the possibility of hurricanes, windstorms, sinkholes and other disasters, as well as individual losses such as home invasions or fires, can bring peace of mind and help minimize the disruption to your personal and professional lives. As Miami property insurance lawyers, we are experienced in assisting homeowners in maximizing their recovery following a loss.  The first step to a successful outcome for your claim is understanding what is covered under your policy and how the claims process works. What Does My Policy Cover? Generally, a homeowners’ insurance policy provides coverage against specific perils or events that cause damage to the property (such as fire, windstorm, theft) or the following: Structure (the dwelling itself) Other structures (such as sheds and fences) Personal property (the contents of the structures) Loss of use (also known as “Additional Living Expense,” which may pay some extra expenses if damage to your home prevents you from living there during repairs) Personal liability (against a claim resulting from injury to others on your property) Medical payments to others (for persons accidentally injured at your home, not included residents of the home) Most homeowners’ insurance policies cover damage caused by windstorms, hurricanes and hail, unless you sign to waive the coverage.  Importantly, however, you cannot obtain new or additional coverage when a tropical storm or hurricane watch or warning has been issued for your area.  You shouldn’t wait until the last minute to purchase your […]

The potential impact of technology on the business of insurance cannot be overstated. Although “InsurTech” is relatively new, the sector has drawn significant attention from investors, as well as from established insurers, who are beginning to change their service models.  In response to changing consumer habits, especially for tech-savvy millennials, new innovations are emerging every day, with the goal of offering simpler products tailored to specific needs and a streamlined customer experience.  As Miami insurance law attorneys, we are following the InsurTech explosion with interest, both for its potential benefits to policyholders, as well as for the resulting industry disruption. What is InsurTech? The term “InsurTech” encompasses the innovative use of technology in insurance.  It is a subset of financial technology, or “FinTech,” which has transformed the banking world.  InsurTech is the technology that lies behind the creation, distribution and administration of insurance.  Smartphone apps, wearables, claims processing tools, online policy handling and automated processing are all InsurTech.  Much of the current InsurTech market involves start-ups targeting millennials, who are accustomed to instant gratification, by focusing on speed, efficiency, and cost reduction.  Examples include: Lemonade, whose motto is “instant everything,” Slice (“instant coverage for all”), and Hippo (“modern home insurance”). The success of these and other start-ups also relies on the demand for greater customization of insurance products, as well as the prevalence of the sharing economy.  For example, Airbnb hosts have created the need for limited commercial coverage, as opposed to a comprehensive commercial policy.  Pay-per-mile automobile insurance caters […]

It is impossible to turn on the news today without hearing about cyber security.  Data breaches and cyberattacks have become almost a constant threat.  As a Miami Insurance Law Firm, we have seen an increase in cyber liability.  And it is not just huge corporations that are targeted by cybercriminals.  Small businesses are also susceptible to events that can damage reputations and put customers and employees at risk.  One of a company’s most valuable assets is its data, and it is important to know that there are specific insurance products available that can not only provide the traditional risk transfer function but can also help your business identify cybersecurity gaps and opportunities for improvement. How is Cyber Liability Covered While many cyber liability claims are submitted under commercial general liability (CGL) policies, such claims can also trigger directors and officers (D&O), errors and omissions (E&O) and other policy types.  Typically, insurance companies argue that cyber liability, such as claims arising from data breaches involving sensitive customer information, is excluded from coverage under general liability policies.  Some insurers are adding cyber-specific exclusions to traditional insurance products.  Some courts have concluded that traditional polices do not cover cyber losses. Today, many insurance companies offer risk-specific cyber insurance policies designed to protect policyholders against data breaches and other cyber-related risks.  Roughly 30% of companies currently have some form of cyber insurance.  Coverage can protect against first party losses (direct losses to the policyholder) and third-party claims (policyholder liabilities to third parties).  First party […]

In two recent decisions, Florida’s highest court has issued significant rulings relating to insurance law.  In both cases, the Supreme Court reversed the decisions of the lower appellate court and upheld the decisions of the trial court, which were favorable to the policyholders.  As Miami insurance law attorneys, it is our job to stay up-to-date on important legal and regulatory developments in the industry, particularly those that may impact our insurance law practice. Court Supports Jury’s Finding of Bad Faith Against Insurer Harvey v. GEICO involved the application of the law of bad faith, which imposes a fiduciary obligation on an insurer to protect its insured from a judgment that exceeds the limits of the insured’s policy.  The case arose from a fatal car accident in which the insured driver had limited coverage ($100,000) under his liability policy.  GEICO resolved the liability issue against the insured and tendered the policy within days of the accident but failed to promptly cooperate with the request of the victim’s attorney for a statement from the driver concerning the extent of his assets.  The estate of the victim returned GEICO’s check and sued the driver for wrongful death, resulting in an $8 million verdict against the driver.  Mr. Harvey then brought a bad faith action against GEICO. During the bad faith trial, the lawyer for the estate testified that had he known that the driver’s only other asset was a business account worth approximately $85,000, he would not have filed suit and would have […]

If your insurance company has denied your claim or resolved it unsatisfactorily, you may be able to bring a bad faith claim against them in court.  Of course, not every denial constitutes bad faith. As Miami insurance claim lawyers, we are experienced in determining whether an insurer has handled a claim appropriately and in recognizing bad faith insurance practices.  For a policyholder, the first step is to educate yourself as to what your insurance company is obligated to do.  The law requires insurers to act in good faith and to engage in fair deals.  Specifically, they are obligated to: Recognize your claim; Investigate in a prompt manner; Respond quickly to your communications; Not slow down the progression with unnecessary forms; and Offer actual reasons for denial of your claim or delays in the process. There are Two Types of Bad Faith Claims A “first-party” bad faith claim arises when an insurance company unreasonably refuses to pay a claim or to properly investigate a claim.  A “third-party” bad faith claim is when an insurance company unreasonably fails to defend, indemnify or settle a claim within policy limits or to investigate a claim for a different-party, such as when the insured (the first party, you) buys insurance from the insurance company to protect against claims from another (the third party).  Florida Law on Bad Faith Claims The good news for bad faith claimants in Florida is that the law is quite clear.  The statute provides that “any person may bring a civil […]

Florida has more sinkholes than any other state; thousands of sinkhole insurance claims are reported here every year.  Unfortunately, not all homeowners’ insurance policies provide coverage for damage to your home resulting from sinkholes.  Florida law, which defines a “sinkhole” as “a land form created by subsidence of soil, sediment or rock as underlying strata are dissolved by groundwater,” only requires insurance companies to cover “catastrophic ground cover collapse.”  What’s the difference between coverage for sinkholes and coverage for “catastrophic ground cover collapse?”  As Miami Property Insurance Lawyers, we have experience with both.  As for sinkhole coverage, while all insurance companies licensed in Florida must offer it, the coverage is usually an endorsement to an existing policy and costs an additional premium.  Moreover, insurance companies may require a property inspection before extending coverage, and if sinkhole activity is present on the property, or even within a certain distance of the property, the insurer may refuse to provide sinkhole coverage. If you do not purchase sinkhole coverage, or it is declined, the only coverage you have is for “catastrophic ground coverage collapse.”  Importantly, four conditions have to be met before this coverage kicks in.  They are: Abrupt collapse of the ground cover A depression in the ground cover clearly visible to the naked eye Structural damage to the building including the foundation; and The insured structure is being condemned and ordered to be vacated by the applicable government agency. All four of these criteria are necessary for coverage.  If, for example, […]