Insurance bad faith law holds insurers accountable when they act dishonestly, unreasonably, or unfairly on a claim. Key issues include first-party vs. third-party claims, common unfair practices, and what a policyholder can recover. In this Letter, we explain what you should know about what actions the law considers insurer bad faith.

Electric utilities are part of the backbone of modern society, providing essential power to homes, businesses, emergency services providers and more. But this critical service is vulnerable to extreme weather events that can cause massive disruptions, damage infrastructure, and jeopardize public safety. Due to the increasing frequency and severity of such storm events, it is more important than ever for electric power organizations and commercial entities to have a comprehensive storm response plan in place. In this Letter, we also discuss recovery efforts for commercial entities after the storm has passed. The John Liner Tip discusses what to do when your computer network goes down.

Property damage caused by riot, civil commotion, or vandalism is generally covered under standard commercial property and business insurance policies. Several types of insurance products, depending on the property’s nature and function, can provide coverage to help with rebuilding or replacement, however, coverage depends heavily on the specific policy language used (e.g., “riot” versus “civil commotion”) and whether the peril has been specifically excluded.

ERISA fiduciary liability insurance protects plan officials and sponsoring companies from personal liability for alleged breaches of duty, such as mismanagement, negligence, or imprudent investment decisions under the Employee Retirement Income Security Act (ERISA). While ERISA bond coverage is required by law to protect plans from fraud, fiduciary coverage is voluntary, covering legal defense costs and plan losses. Unlike ERISA fidelity bonds (which only cover theft/fraud), liability insurance covers negligence and mismanagement.

After the last couple of years of California wildfires, large snow storms, and other extreme weather events throughout the United States, it’s a good time to revisit the calculation of replacement cost under policies insuring against loss or damage to property. The concept of replacement cost — sometimes referred to as “new for old” — seems simple, but issues often arise over the calculation and various policy terms and conditions.

Agency errors & omissions (E&O) insurance, or professional liability insurance, protects insurance agents, brokers, and agencies from claims of negligence, mistakes, or failure to perform professional services. It covers costs related to legal defense, settlements, and damages, such as failing to procure coverage or misrepresentation. In this Letter, we discuss how recent court decisions reveal mistakes to avoid.

Readers Ask — We periodically receive correspondence from subscribers asking for our opinion on various issues or for an elaboration on past Letters. This issue is devoted to recent queries. I have a physician client with a private practice. Instead of hiring associate doctors as employees of the practice, she contracts with independent doctors to “staff” her office. She believes this protects her from a liability claim arising out of the work of one of these “independent” doctors even when they’re practicing out of her office. I disagree. Who is right?

What should you expect when your account comes up for renewal in 2026? In this Letter, we look at the state of the P&C market going into the new year.

The workers compensation premium you pay when your policy begins or renews reflects the insurer’s “best guess” as to how much the cost of coverage will actually be for the policy period. The final premium is subject to a number of factors, including actual payroll, loss experience, loss-sensitive rating plans, etc. A premium audit, conducted after the end of the policy period, is used to determine the correct premium. This John Liner Letter discusses premium audits and how they can work to your advantage.

If your company is looking to stimulate growth, increase market share, and influence supply chains by seeking M&A opportunities, make sure you do your homework. Despite the potential benefits, M&A deals are fraught with serious risks, including poor due diligence, overpaying, and integration challenges.

Business interruption insurance coverage disputes often arise from disagreements over policy interpretation, causation, and loss valuation.

Artificial intelligence (AI) is everywhere — in research tools, in “smart” assistants that draft contracts, and in HR screening and decision-making. We can’t avoid it, but while cyber insurers are, somewhat surprisingly, holding firm on covering AI risks, other key coverage lines are quietly changing their stances — and not in your favor.

Vol. 62, No. 9 Description Business hurricane insurance isn’t a single, standalone policy but rather a combination of various coverages designed to protect businesses from the …

Vol. 62, No. 9 Description In insurance, relatedness refers to how claims are assessed in relation to each other, particularly in claims-made policies. If claims are deemed related, they …

Vol. 62, No. 8 Description Workers compensation claims can be a major drain on organizational resources. Any method an organization can use to reduce costs in this area will help the bottom …

Vol. 62, No. 7 Description Cannabis-related businesses (CRBs) face many risks and obstacles. CRBs share the same general liability and other risks agricultural and manufacturing businesses …

Vol. 62, No. 6 Description Cannabis-related businesses (CRBs) face many risks and obstacles. CRBs share the same general liability and other risks agricultural and manufacturing businesses …

Vol. 62, No. 5 Description What is workplace violence? How do you prevent it? How do you respond if it occurs? This Letter discusses workplace violence risk management.  Article …

Vol. 62, No. 4 Description Readers Ask — We periodically receive correspondence from subscribers asking for our opinion on various issues or for an elaboration on past Letters. This …

Vol. 62, No. 3 Description What should you expect when your account comes up for renewal in 2025? In this Letter, we look at the state of the market going into the new year.  …