In these challenging economic times, which include inflation and rising costs of workers’ compensation coverage, one way employers can reduce their workers compensation insurance coverage costs is to request the inclusion in their policies of deductible provisions. In addition to premium cost savings, deductible plans can improve employers’ cash flow, provide increased tax deductions, and…
Ordinarily, bad faith claims against insurance carriers are brought in the Superior Court in the General Courts of Justice in North Carolina. These claims are based upon the law of contracts and torts. The law provides that there is an implied covenant between an insured and a carrier for the carrier to act in good…
As if managing and running a municipality isn’t hard enough, local governments have recently been the target of an increasing number of cyberattacks, both in frequency and in the severity of ransom demands. Just a few examples we have seen include: “We won’t talk more, all we know is MONEY! Hurry up!” — this was…
In nearly all instances, when a worker is injured on the job in North Carolina, the North Carolina Industrial Commission has jurisdiction over the claim. One notable exception involves out-of-state employers who do not regularly employ three or more employees in North Carolina or voluntarily purchase North Carolina workers’ compensation coverage. So, what happens when…
Individuals and companies who provide a service for a fee, such as insurance agencies, carry errors and omissions insurance to protect against a negligence claim made by a client. While these claims are most often defended by professional liability attorneys, there are clear advantages to retaining a liability attorney who is also familiar with insurance…
Partner Bill Bulfer contributed to an article published in the May edition of DRI’s flagship publication, For the Defense. The article, titled “The Dynamic of the Defunct Insured and Bad Faith,” outlines how counsel and claims handlers can successfully handle coverage for defunct insureds and corresponding claims from plaintiffs asserting bad faith. Each issue of For…
Numerous businesses impacted by COVID-19 are searching for relief wherever they can find it. Difficult decisions are being made with respect to layoffs, lease or mortgage payments, and federal loan assistance as companies attempt to navigate the current environment. One area generating increased attention is whether a company’s contract provisions create either an obligation or…
Many companies carry business interruption insurance as a component of their first-party property insurance or as a freestanding policy. Such coverage protects against losses sustained during periods of suspended operation due to various events and damage. Although there is no doubt that operations and business has been suspended across countless industries in recent months, business…
On March 27, 2020, and again on March 30, 2020, Mike Causey, Insurance Commissioner at the North Carolina Department of Insurance issued Orders that N.C.G.S. § 58-2-46 be effective across all North Carolina counties. The Orders are effective until April 26, 2020, and apply to all insurance companies including service corporations, HMO, MEWA, surplus lines…
In the world of insurance, it is inevitable that policies will be cancelled. As you can imagine, there is nothing worse than receiving a claim on a policy well after the effective date of cancellation. What should be a simple, clear cut denial of liability can quickly spiral into an expensive defense effort resulting in…
