“Weather Claims and Bad Faith in the Face of Climate Change”
Swift Currie attorney Rebecca Strickland authored an article for Insurance Journal discussing spikes in insurance claims related to weather disasters. With a significant number of people and businesses facing devastation from weather disasters, claims decisions by insurers have been closely scrutinized.
Strickland examined some recent cases involving weather-related coverage and how the decisions have established precedent and emphasized that insurers must carefully evaluate when an anti-concurrent causation clause applies, as demonstrated by Frymire Home Services, Inc v. Ohio Security Insurance Company, Doxey v. Aegis Security Ins. Co. and many more instances. She also provided guidance on how to prevent bad faith claims, including ensuring there is an appropriate number of claims professionals assigned to an affected area, documenting outreach to the ensured and ensuring that the claim file reflects all aspects of the inspection performed.
“The same claims handling practices that govern nonweather claims are amplified in weather-related claims,” said Strickland. “Insurers should communicate clearly and timely with insureds and enforce the terms and conditions of the policies and applicable law in the jurisdiction.”
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