October 29, 2014
FOR IMMEDIATE RELEASE
SERIO CALLS FOR EXPANSION OF CIVIL AUTHORITY INSURANCE COVERAGES
Potomac Falls, Virginia (October 28, 2014) - Former New York superintendent of insurance Gregory V. Serio called on insurers to greatly expand the civil authority coverage provided for in commercial insurance policies. Superintendent Serio made his comments during a presentation on the topic of civil authority insurance coverages at the October 20-22, 2014 First Party Claims Conference held at the Crowne Plaza Hotel in Warwick, RI.
Civil authority insurance is that component of a commercial insurance policy, usually within business interruption coverage, that protects businesses which have been disrupted by an order or action of a governmental agency.
"Whereas civil authority was once a limited coverage pertinent in cases of individual losses, it has taken on a far greater import as emergency orders, wide scale evacuations, and more proactive and preventive emergency management have become the norm during times of disasters," Serio said. "The coverages are sorely lagging behind the changing times, and their impacts upon the nation's businesses, especially small businesses which can least afford or manage disruptions lasting more than a couple of days," he continued.
"If the industry is unwilling to take on this obligation to policyholders and insurance consumers, then I would expect insurance regulators and state legislators would take up the mantle."
Serio, a partner in the New York City-based consulting firm Park Strategies, LLC, also advocated to the audience of insurance professionals (including public insurance adjusters, lawyers, accountants and engineers) that they become more proactively engaged with governmental agencies, including emergency managers, to make certain that government orders issued before, during or after disasters like hurricanes, earthquakes and tornadoes, or terrorist events, reflect the terms and provisions of civil authority insurance contracts to assure that businesses will be covered for losses incurred as a result of those orders. "Oftentimes," Serio said, "the orders are missing critical pieces of information that render civil authority policies useless."
Now in its sixth year, the First Party Claims Conference is open to all insurance practitioners and related professionals focusing on the adjusting and settling of first party insurance claims. For more information contact David Barrack, Executive Director, First Party Claims Conference, 21165 Whitfield Place, #105, Potomac Falls, VA 20165 / (703) 433-2520 or firstname.lastname@example.org.
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