Reasonableness of Insurer’s Coverage Decision Determined by Evidence Available at Time of Decision (JD Supra)

Reasonableness of Insurer’s Coverage Decision Determined by Evidence Available at Time of Decision

  Tuesday, July 13th, 2021 Source: JD Supra

The Eighth Circuit Court of Appeals recently held that, under Iowa law, an insurer is not liable for breach of contract or bad faith if its coverage decision was objectively reasonable at the time it was made.

In Hallmark Specialty Ins. Co. v. Phoenix C & D Recycling, Inc., No. 20-1339, 2021 WL 2197068 (8th Cir. June 1, 2021), a fire originated from a pile of biofuel material on an insured’s power plant, causing alleged damage to buildings, wiring, equipment, and other materials.

The insurer paid for a portion of the insured’s equipment losses, but not for removal and installation of wiring and equipment because the policy did not require such payment until damaged property had been repaired or replaced.

While the insurer eventually paid for these items, the insured contended that the insurer should have made these payments at the time of the initial claim.

The insurer also hired an accounting firm in anticipation of the insured’s business interruption claim, and the firm requested relevant information from the insured.

  Read Full Article
SOS Ladder AssistMid-America Catastrophe ServicesSupportive Insurance ServicesBullseye Adjusting & Associates LLC

  Recent Provider Listings

Serving Orange & Surrounding Counties
Florida Contents Inventory And Valuation Services
Serving California & Nevada Statewide
California Adjusters
Serving Florida Statewide
Florida Engineers Forensic Consultants