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On Our Mind… Can Complacency Could Lead to Mistakes and E&O Exposures?

“If it ain’t broke, don’t fix it “ is the slogan of the complacent, the arrogant or the scared. It’s an excuse for inaction, a call to non-arms”……..Colin Powell​​​​As I was preparing to write this week’s note, I came across the above quote. Boy does it apply to our “new normal”. It would be very easy to get complacent these days- it would be easy to take short cuts or just mail it in as my Dad used to say. Well, complacency could lead to mistakes, errors and omissions.. What a great time to look at your agency’s operations, procedures and protocols. We have our annual E+O…

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Maidstone Policies Cancelled Despite Moratorium

​Despite the current moratorium on property-casualty insurers terminating policies, all policies issued by insolvent carrier Maidstone Insurance Co. cancelled on April 13. New York State Supreme Court in Nassau County ordered on February 13 that Maidstone be liquidated due to its inability to meet its obligations to pay claims. The New York State Department of Financial Services was appointed as the liquidator. The order also required all Maidstone policies to be cancelled effective April 13. Big I New York contacted the DFS recently to ask whether the department would petition the court to delay the effective date of cancellation, given the current moratorium. The department…

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Big I NY Pushes Back Against Misguided Business Interruption Coverage Bills

​The Issue: The issue of the applicability of business interruption coverage has become one of the most hotly discussed insurance issues related to the COVID-19 pandemic. It is well-established that for virtually every commercial business interruption policy, there is no coverage for losses related to COVID-19. In response, both Congress and the New York State Legislature are currently considering legislation that would retroactively require insurers to cover losses related to COVID-19. We believe these proposals are misguided and would have catastrophic consequences. On the Federal level, Rep. Brian Fitzpatrick (R, Pennsylvania) has sponsored the “Never Again Small Business Protection Act" that would require every commercial…

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