May 4, 2017, Covington Alert

With effect from today, policyholders may recover damages from insurers for late payment of some insurance claims.

For insurance contracts agreed or renewed on or after May 4, 2017 and governed by English law, the UK Enterprise Act 2016 introduces an implied term, affording the policyholder the right to recover losses caused by the insurer’s failure to pay valid claims within a reasonable time. The insurer has the burden to prove reasonable grounds for a delayed payment. The parties to business insurance contracts may agree to exclude damages for delayed payments that are neither deliberate nor reckless; but the insurer must specifically notify the policyholder of any such provision before entering the contract.

Policyholders should be alert to this new right, both at renewal and in future claims under UK insurance contracts.

January 23, 2017, Financial Times

Richard Mattick is quoted in a Financial Times article regarding concerns raised about whether claims on insurance policies will be met following the Buffett-AIG deal. According to Mattick, “This deal would merit close monitoring from policyholders to see how claims are handled under the new deal and ensure that policyholders have options for recourse should ...

January 28, 2016

WASHINGTON, DC - Law360 has named six Covington practice groups among its “Practice Groups of the Year.” The practice groups recognized by Law360 are as follows: Government Contracts Insurance International Trade Life Sciences Product Liability Sports