The article of the month deals with E-business issues. E-businesses face a barrage of traditional and Internet-specific exposures. Whether a company conducts business solely online or maintains only an informational Web site about its products or services, both are open to exposures that are associated with E-business. The article of the month focuses on issues arising for companies delving into any aspect of E-commerce. The article discusses intellectual property, privacy, security, and business interruption issues, and offers some case law for review.

The court cases this month come from the Vermont Supreme Court, the U.S. District Court for the Eastern District of Oklahoma, the Court of Appeals of Oregon, and the U.S. District Court for Alaska. The Vermont Supreme Court offered an opinion on the interpretation of the pollution exclusion. The U.S. District Court in Oklahoma discussed several exclusions in the general liability policy and focused mainly on whether faulty workmanship can constitute an occurrence that triggers coverage. The Court of Appeals of Oregon discussed the phrase “ongoing operations” wherein the question was whether an additional insured was entitled to defense from the named insured's insurer. The U.S. District Court for Alaska ruled on the availability of coverage under a claims-made policy where the insured failed to report the claim during the policy period.

Questions and Answers

What is meant by an event that contributes concurrently to a loss? See Example of Concurrent Causation. Is the increase in the cost of purchasing water considered an extra expense? See Extra Expense Coverage for Price Increase. If a lightning strike caused a power surge, would the loss be covered according to the ISO CP 10 30 06 07? See Lightning and Power Surge. Is theft of a company laptop and iPad stolen from a director's car covered? See Theft of Property in Transit.

Builders Risk Endorsements

Several endorsements are available that modify coverage under the Builders Risk Coverage Form, CP 00 20 10 12, in various manners. The following endorsements are discussed, including recent updates: Builders Risk Reporting Form, CP 11 05 04 02; Builders Risk Renovations, CP 11 13 06 95; Builders Risk – Separate Or Sub-Contractor's Exclusion, CP 11 14 07 88; Builders Risk – Separate Or Sub-Contractors Coverage, CP 11 15 07 88; Builders Risk – Collapse During Construction, CP 11 20 06 07; Builders Risk – Theft Of Building Materials, Fixtures, Machinery, Equipment, CP 11 21 10 12. See Builders Risk Endorsements.

AAIS Farm Umbrella Coverage:

This article reviews the AAIS Farm Umbrella Coverage. See Personal Farm Umbrella Program of the American Association of Insurance Services.

Business Continuity Planning Guide

The Business Continuity Planning Guide has been updated. This helps the agent prepare the office for emergencies so that he is always available to help insureds in time of disaster or catastrophe. See Business Continuity Planning Guide.