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Severe Weather & Natural Disasters

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Severe Weather & Natural Disasters

As the frequency and ferocity of extreme weather events and natural disasters increase, companies are facing a range of legal and regulatory issues stemming from the fallout.

Severe weather events and natural disasters—and the disruption and infrastructure damage that often follow—can lead to challenges related to insurance recovery disputes, government and regulatory investigations, consumer class actions, wrongful death and personal injury lawsuits, mass tort cases, securities litigation, and more. Implications to employee policies, tax considerations, cybersecurity issues, and bankruptcy and restructuring considerations also may arise.

Our global team of lawyers has in-depth knowledge and skill in handling the full spectrum of issues involving crisis management, insurance claims, energy-related concerns, environmental counseling, and workforce matters, among others.

Essential Insurance Recovery Strategies for Retail and Energy Companies in a Year of Extreme Weather (09/27/2024)

Maximizing insurance recoveries following a disaster can be a complex process. Following is a checklist to help policyholders report claims promptly, document losses meticulously, and pursue coverage claims effectively:

1. Identify Policies. Collect and analyze all available insurance policies, including policies issued to other entities under which your company may be an additional insured or loss payee.

2. Consider Timing Issues. Comply with notice, proof of loss, and suit limitation clauses in all potentially applicable policies.

3. Document Losses. Track property damage and business interruption losses; maintain records of financial losses and expenses incurred to repair or replace property, restore operations, and mitigate losses; document insurer requests for information and coverage positions.

4. Evaluate Remedies. Analyze remedies available to policyholders, including through appraisal, mediation, arbitration, and litigation.

5. Engage an Experienced Team. Insurance claims present hidden pitfalls that can significantly curtail otherwise available coverage. Consult an experienced insurance recovery team to advise throughout the claim process and dispute resolution to maximize recoveries.

> Learn more information on steps for leveraging insurance in the aftermath of a disaster.

Contacts: Sergio Oehninger, Brad Nes, Teri Diaz

Additional Resources

Essential Insurance Recovery Strategies for Retail and Energy Companies in a Year of Extreme Weather (09/27/2024)
Business Interruption Insurance: Recovering from Catastrophic Events, HNBA Noticias (03/24/2022)
Climate Change: Policyholders Should Be Braced for a Rising Tide of Coverage Issues (01/31/2022)
Five Steps for Leveraging Insurance to Recover from Severe Weather (09/21/2021)
After the Storm: Maximizing Insurance Assets to Recover from Natural Disasters (09/15/2021)
Maximizing Insurance Assets Amid Extreme Weather Conditions (02/24/2021)

As businesses and employees begin the journey toward recovery after a disaster, employers need to be mindful of federal and state laws related to leaves, planned and unplanned absences, accommodations, and pay practices.

Employee Absences. Employees may be out of work because they are dealing with personal property damage, the closure of schools, or injury to a family member. Employers need to consider the federal Family and Medical Leave Act before taking any action.
Flexibility. Many companies may want to give their employees additional flexibility during a crisis, including a temporary change to leave policies or remote-working options.
Evacuations. Employers need to exercise special care when applying attendance policies in areas subject to an emergency evacuation order.
Well-being. If an employee is having performance or behavioral issues due to the physical or emotional impacts of a severe weather incident, employers need to consider accommodations before imposing discipline.
Shutdowns. If a business closes for a period of time, employers need to consider deciding whether employees will be paid for that time and, if so, whether the company plans to deduct the time from accrued paid time off.
Compliance with Local Legislation. In response to specific emergencies, states or local jurisdictions may enact legislation related to wages, timing of payment, or other workforce-related practices. We actively monitor such developments and advise employers on compliance.

Contacts: Stefanie Moll, Kim Lunetta

The scope and magnitude of environmental issues caused by severe weather and natural disasters continues to evolve. The most common environmental questions likely to arise for companies in their aftermath include:

Compliance with environmental obligations, including discharge permits
Potential or threatened releases or chemical reactions
Examination of emergency response planning
State, federal, and local enforcement agency investigations
Legislative and regulatory action
Citizen, non-governmental organization, and government litigation
Corporate impacts

Contacts: James Dragna, Ella Foley Gannon, John Gisleson

Additional Resources

Following severe weather events, energy companies are usually faced with navigating a multi-faceted legal and regulatory landscape. We recognize the potential for aftermath-related issues to evolve into significant challenges and we assist companies prepare for and address them. These challenges include:

Interruption of fuel supply
Claims under existing contracts, including payment of damages, liquidated damages, breach of contract, and force majeure
Reliability of the grid and additional power sources, including energy storage
Mass tort, wrongful death, personal injury, property damage, negligence, and similar claims
Government investigations
Financing considerations, including financing relief and consequences
Procurement of insurance and dispute resolution over covered losses
Project development and finance

Contacts: Stephen Spina, Daniel Skees, Kirstin Gibbs, Michelle Pector, Althea Day

Additional Resources

Following a disaster, various federal tax return filing and payment deadlines may be extended by the Internal Revenue Service for individuals and businesses. Consult the IRS Newsroom for the latest updates on weather-related extensions for tax filing and payment deadlines.

Our tax team can also assist with establishing charitable programs and tax-favored vehicles to assist victims of severe weather events and disasters.

Contacts: Celia Roady, Megan Bell

Our team serves companies in the real estate industry as well as those whose business models use real estate as a strategic asset in connection with severe weather and natural disaster preparedness and the aftermath of the destructive forces. We are deeply familiar with the myriad legal issues that can arise under these circumstances, such as:

Insurance considerations, including casualty coverage
Temporary relocation
Land use
Force majeure
Landlord and tenant considerations
Impracticability of performance
Operating expenses
Rate abatement negotiations
Foreclosures and evictions

Contacts: J. Bland

Additional Resources

Leasing Considerations for Tenants and Landlords During COVID-19 Pandemic (03/27/2020)