Articles by Andrew G. Simpson

U.S. Treasury Warns Cyber Insurers Against Paying Ransomware Demands

The U.S. Treasury Department is warning that individuals or businesses that help facilitate ransomware payments may be violating anti-money laundering and sanctions regulations. The warnings came in a pair of advisories, one from the Financial Crimes Enforcement Network (FinCEN) and …

Judges Nix Consolidating COVID Business Interruption Suits Against Big Insurers

A panel of federal judges has decided against consolidation of hundreds of lawsuits seeking coverage for coronavirus-related business interruption claims against major national insurers Travelers, The Hartford, Cincinnati Insurance and Lloyd’s. The insurers had opposed consolidation; some plaintiffs sought the …

Why Some Organizations Are Managing Coronavirus Risk Better Than Others

While few, if any, organizations saw the coronavirus pandemic and all of its death and disruption coming, some were better positioned to deal with it than others. According to risk expert Jim Wetekamp, some organizations were better prepared to respond …

Insurance a Major Factor in Law Enforcement Civil Rights Settlements

Municipalities, their insurers and risk pools should be heeding the current public re-examination of police and prosecutorial actions taking place across the country, according to an insurance policyholder attorney who works on civil rights cases. Attorney Alexander Brown sees the …

Insurer Defeats California Restaurant’s Coronavirus Business Loss Claim

A federal court in California has dismissed a lawsuit filed by a Los Angeles restaurant seeking business interruption losses from Travelers Indemnity due to coronavirus-related restrictions on its business. Judge Stephen Wilson of the U.S. District Court for Central California …

Analysts Warn of Effects of Hurricane Laura Losses on P/C Insurers

Ratings analysts A.M. Best and Moody’s are expecting property/casualty insurers and reinsurers to suffer meaningful losses from Hurricane Laura. A.M. Best expects losses from Hurricane Laura to place added stress on its rated insurance companies’ balance sheets, which it adds …

Lloyd’s Evades $3M in Judgment Interest Because FDIC Waited Too Long to Collect

Lloyd’s of London does not have to pay the U.S. government’s Federal Deposit Insurance Corp. $3 million in judgment interest because the FDIC waited too long —18 months after a final judgment — to try to collect it. The action …

Federal Judge Denies Bid to Remove COVID-19 Business Interruption Suit

A federal judge in California disappointed a law firm suing Travelers Insurance over coronavirus lockdown related business interruption claims in refusing to remove its case to state court and denying its request for a dismissal or stay of a countersuit …

Ralph Lauren Sues to Recoup COVID-19 Closure Losses

Fashion firm Ralph Lauren Corp. is suing its insurer to recoup what it says has been a huge drop of two-thirds of its revenues in the first quarter alone due to the pandemic. Ralph Lauren Corp. (RLC) maintains that Factory …

D.C. Judge Hands Insurers Another Win in COVID-19 Business Interruption Fight

The insurance industry has notched another victory in its defense of its commercial insurance policies against claims for business interruption due to the coronavirus. In a case brought by the owner of several restaurants against its insurer over business interruption …