Here’s a quick overview of the Florida Condo Collapse case as well as three other recent, severe business losses related to various lines of insurance.

After that, the answer to “What Liability Limits Should We Carry?”.
 

LIABILITY - Judge Awards Initial $150 Million for Victims of Florida Condo Collapse

Following the June collapse of the 12-story oceanfront condominium, a Florida judge has granted victims and families who suffered losses, a minimum of $150 million in shared compensation. The ruling includes $50 million from insurance on the Champlain Towers South building and the expected $100 million proceeds from the sale of the site. The $150 million does not account for the many other lawsuits already filed, which are being consolidated into a single class-action suit.

 

EMPLOYMENT PRACTICES LIABILITY – New Jersey Company To Pay $150,000 to Settle EEOC Disability Lawsuit

After firing a recovering opioid addict, a New Jersey-based pharmaceutical and medicine manufacturing company must pay $150,000 to settle a resulting disability discrimination lawsuit. The lawsuit was brought on by the U.S. Equal Employment Opportunity Commission (EEOC). The company allegedly violated Title I of the Americans with Disabilities Act by terminating an employee who tested positive for a legally controlled substance. The lawsuit also alleges that even after the company learned that the employee was participating in a medication-assisted treatment program, he was forced into counseling with a clinical psychologist and his return to work became contingent on discontinued use of the legally prescribed medication.

 

ENVIRONMENTAL LIABILITY – Delaware Companies Agree to $50 Million PFAS Settlement

Delaware-based companies DuPont, Chemours and Corveta have agreed to pay the state $50 million in connection with contaminating the environment with per-and polyfluoroalkyl substances (PFAS). The Delaware Department of Natural Resources and Environmental Control will use the settlement proceeds for a variety of natural resource needs, including environmental restoration, improvement, sampling and analysis, community environmental justices and equity grants.

 

WRONGFUL DEATH - $27 Million Verdict in Wrongful Death Suit 

Sunrise Tire and Lube Services Inc., a California service shop, must pay $27 million after tires that the company worked on detached from a tractor-trailer and killed a woman in New Mexico. The victim, from Pennsylvania, was struck by one of two detached tires while on a cross-country motorcycle trip with her husband. The collision pushed her to the outside lane, where she hit a tractor-trailer. A jury awarded the plaintiffs $17 million in compensatory damages and $10 million in punitive damages after attorneys for Sunrise failed to appear at trial.

 

“What Liability Limit Should We Carry?”

If we had a crystal ball, we would buy a limit that would be sufficient to pay for our actual legal responsibility during the policy term. 

Otherwise, three important questions will need to be answered…

1. What is the greatest catastrophic liability exposure to our organization or family?

Whether it’s a claim for loss resulting from distracted driving, construction defect, a defective product, or a 3am fire in an apartment building (just to name a few), its critical to pinpoint our catastrophic loss potential and estimate its financial implications.

2. What is the business equity or personal net worth that must be protected?

This is the organization or individual net worth that must be insulated from lawsuits.

3. What “insurance premium budget” makes financial sense for the business, individual, or family?

One insurance agent explained that he asks his clients, “If liability insurance was free, how much would you want?” He then provides premium pricing for liability limits in $1MM increments to locate an insurance premium budget that the client considers “financially healthy” for their organization or family.

 

 

VANTREO is here to help. If you’d like to know how the liability insurance you purchase works, or get input on the limit to carry, just call us at 800-967-6543 or email us...Reply here