WN files lawsuit over 2016 computer failure
Sep 18, 2019, 10:18 am
#1
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Sep 18, 2019, 11:51 am
#2
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Must be quite a bit more to this story. It takes 3 years to get to this point?
Sep 18, 2019, 12:01 pm
#3
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Was that the faulty router in the basement outage? Imagine having to sue an insurance company to pay benefits, how unique. Although IME it takes an act of god (fire, flood, etc) to trigger Business Interruption insurance. Perhaps they had a technology failure rider.
Sep 18, 2019, 12:07 pm
#4
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I'm sure there is, WN and Liberty arguing and haggling over the cause of the claim, who didn't mitigate or act fast enough and doing the payout or we will take our renewal premiums elsewhere dance. 3 years is the statute of limitations in most cases, that is why you see personal injury suits come out of the woodwork as it approaches 3 years. Involved employees turnover, memories get hazy, details get lost.
Sep 18, 2019, 12:11 pm
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Sep 20, 2019, 11:27 pm
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The actual lawsuit has additional information. Southwest already recovered $40 million from insurance (4 different layers of $10 million each) and that is excess of a $2,500,000 deductible. So they are at $42,500,000. The claim that the loss is much higher, as reported. However, after lots of investigation and meetings and discussion, Liberty has agreed that it is a covered claim, but disagrees that the actual damages are sufficient to implicate its policy. This will be an interesting one to watch not so much for the travel hobbyists, but for those of us who are insurance coverage geeks (probably a very small subset of the FT population).