HNRK Coverage Corner

The Washington Post reports: “Wildfires are ripping across the Great Plains, and other fare ups are popping up in Arizona and Colorado remarkably early this year.”  Experts predict that the “fire season ahead is a recipe for concern—perhaps signaling an expanding frontier for fire risk in broader patches of the western half of the United States.” 

Heading into what is anticipated to be a “brutal” wildfire season, utility companies and other businesses are increasingly exposed to liability for the resulting losses.  Liability insurance policies may provide coverage for these losses, but the devil is in the details.  Now is the time for businesses with wildfire exposure to stress test their insurance programs.  HNRK’s Chambers-rated insurance recovery practice group can help.  We have experience representing utility companies pursuing insurance coverage for wildfire liabilities—including the Long Island Power Authority, which recently resolved long-standing litigation arising from fires caused by Superstorm Sandy. 

Last year, the ABA’s Insurance Coverage Litigation Committee published an article by HNRK insurance recovery partner Brad Nash and associate Milan Sova on one nettlesome issue facing insureds who seek coverage for wildfire liabilities—determining the number of “occurrences” at issue.  The policy language and governing law can drive the outcome on this and a host of other issues that can be spell the difference between adequate coverage and no coverage for extraordinary liabilities.