Construction Defects Lawsuit Leads to $17.5 Million Settlement for Condo Association
The homeowner’s association for a luxury, oceanfront condo tower in Florida recently settled its construction defects lawsuit against the tower’s developer, contractors and architect for $17.5 million. The Regalia on the Ocean Condominium Association in Sunny Isles Beach filed the lawsuit in 2018, alleging construction flaws including improperly-installed pool joints, unsafe steam rooms and problems with sliding glass doors. As part of the settlement, the association will receive a $9.6 million cash payment to cover repairs and an $8.5 million markdown on the purchase and installation of new sliding glass doors for the tower’s 39 units. Condos in the 46-story building, which is reportedly home to soccer star Lionel Messi, are priced between $7.95 million to $29.9 million. According to the law firm for the association, the insurers of Regalia Beach Developers LLC, Charleville Development Corporation, and architecture firm Arquitectonica, along with some of the subcontractors involved in the project, will be responsible for the settlement payment. The situation is just one example of the significant costs construction companies and design professionals can face when problems are discovered after the completion of a project. Earlier this year, a New York Times report detailed complaints from residents at 432 Park in Midtown Manhattan. The 1,400-foot luxury tower was built on “Billionaire’s Row” in 2015, and was once the tallest residential building in the world. Claims from residents of the high-rise included elevator malfunctions, millions of dollars in water damage, and creaking walls. When a company is sued after a project is completed, expenses such as legal defense, repairs and settlement amounts could be covered by Commercial General Liability (CGL) Insurance or Architects and Engineers Professional Liability Insurance. “With construction-related risks for professionals, it really comes down to whether there was a faulty design and whether damages occurred due to that potential faulty design,” said Tony Abrudeanu, Director, Professional Liability, , Dallas/Ft. Worth, Texas. “Did the contractor follow the design properly, or was it structurally not sound because of the blueprints? There can be a lot of gray area.” Construction flaws after project completion may bring major expense Post-construction lawsuits over alleged design flaws are among the costliest issues that can occur in the construction industry, said Nicholas Freeman, Associate Managing Director, Broker, Casualty, skyscraper insurance Dallas, Texas. In many cases, lawsuits are filed years after a project is completed. “Each state has a different statute of repose, which dictates how long a lawsuit will still be accepted after a project is complete,” Freeman said. “In Texas, for example, the limit is 10 years after a project is complete, meaning someone can file a lawsuit for a construction defect or an injury anytime within those 10 years.” On May 10, construction company Howard Hughes agreed to pay $116.5 million to the condo association of a luxury, high-rise tower in Hawaii over construction defects that allegedly reduced home values in the complex.1 The company reportedly claims that a Honolulu-based general contractor was ultimately responsible for the flaws in the tower, which was built in 2016, and that it expects to recover its costs. Lawsuits that allege injuries or property damage were caused by a construction company’s work could be covered under the firm’s CGL Insurance. While CGL Insurance typically covers a specific company and its employees, a broader form of CGL Insurance known as a Wrap policy can extend to anyone who worked on the job site, including subcontractors. These policies typically include coverage for ongoing work as well as completed operations, Freeman said. “If the policy is written properly, it can cover lawsuits that take place during the construction process, and through the statute of repose afterwards,” he explained. E&O Insurance essential for construction professionals In Montreal, Quebec, officials said human error forced the temporary closure of a major bridge on May 20 after the company fixing the structure accidentally damaged 40 reinforcement bars.2 In February, consulting firm CDM Smith agreed to pay $1.75 million to settle claims of breach of contract and professional negligence related to its role in the design and construction of a large, lined pond that was part of a water treatment plant for the Community Services District of Cambria, California.3 The district claimed the pond required repairs, redesign, and modification that cost about $2.5 million. Construction flaws are attributed to professional mistakes in cases like these, which could be covered by Architects and Engineers Professional Liability Insurance or Design Professional Insurance. In the event of a lawsuit, these policies could help pay for legal defense, medical expenses related to bodily injuries, construction materials to repair the mistake, and other costs. “When there is a bodily injury or property damage loss and it comes down to a design or blueprint error, the financial loss can add up quite substantially,” Abrudeanu said. Fixing a professional error can also lead to claims for third-party losses, such as a business that can no longer operate while building repairs are made. “There can be a large financial loss because of this,” he said. “Even if they catch it before an accident happens, there are costs involved with that as well. Who will pay for those additional construction costs? Redoing part of a project can add up quite a bit.” Professional Liability Insurance should generally be carried by the architect or engineering firms involved in a project, the construction managers, land surveyors, and any design professionals who may be brought into the project. “Usually, it is those who are actually providing the design and the blueprints who need this insurance,” Abrudeanu said. “Professional Liability Insurance helps cover the financial loss that occurs due to negligence or faulty design, and any bodily injuries that result.” Even though contractual agreements with clients may not require these professionals to carry Architects and Engineers Professional Liability Insurance, it is no less essential than the CGL Insurance or Excess Liability Insurance that contracts may mandate. “It is not the norm yet,” he said. “However, for a design professional, this is actually their main exposure. If a lawsuit occurs, it is most likely going to be related to the design work. The insurance
How to Avoid Hitting a Deer
Autumn is beautiful, but it also introduces some fall driving hazards… deer collisions being one of them. From October to December, mating and hunting season make deer go on the move. For drivers, that means you’re more likely to hit one. But have you ever wondered how your auto insurance can cover hitting a deer? Are deer collisions covered by comprehensive or collision coverage? According to the National Insurance Crime Bureau, deer-vehicle collisions are the top animal-related claim in the U.S. Before you get too worried, here are some helpful tips on how to avoid hitting a deer… and how to handle things if you end up hitting one despite your best efforts. HOW TO AVOID HITTING A DEER Know where the deer are likely to be. Areas with high deer populations are normally marked with a bright yellow sign. Deer also tend to graze in wooded areas or open fields. When driving your usual route to work, be attentive to areas where you’ve seen deer in the past – they are likely to cross there again. Be alert at sunrise and sunset. Deer are more active during dawn and dusk hours. Use your high beams. When possible, use your high beams for better visibility. The extra light will help make it easier to spot a deer, or other animals, lurking alongside the road. Don’t rely on deer gadgets. Whether it’s a deer whistle, deer fence or other type of product to scare away the deer… don’t rely solely on them to keep deer away. Research isn’t exact on whether or not these products truly work. (Related: Fact or Fiction? Debunking 6 Common Myths About Deer) When you see one… you’ll probably see more. Deer travel in groups. If one comes across your path, proceed with caution in case there are more. Don’t swerve. Swerving isn’t always the safest option. Hitting a deer might often cause less damage than swerving to avoid it… and then hitting a more dangerous obstacle, like a vehicle in oncoming traffic. (Related: What’s Safer… Swerving or Staying the Course?) Wear your seat belt. If you do hit a deer, wearing a seat belt decreases your chances of injury. Spread the word. When friends or family head out on the road, let them know to be careful and alert. Even a simple reminder can help prevent deer collisions. WHAT TO DO IF YOU HIT A DEER Taking the above precautions can help you avoid hitting a deer… but nothing can entirely rule out the possibility. Here are steps you can take after you hit a deer. Pull over. Move your vehicle to a safe place off the road. Don’t forget to turn on your hazard lights. Stay away from the deer. An injured deer can still lash out and hurt someone. Assess the damage. When you’re out of harm’s way, examine your vehicle and take photographs of any damage to your car. Use good judgement to know if your car is safe to drive or if you’ll need to call for a tow truck. Learn how to add Emergency Roadside Service to your ERIE auto policy. Call for help. Depending on the circumstances, consider calling the police or an animal expert. While it’s not always required to file a police report, it can provide evidence if you decide to make an insurance claim. If the deer is still in the middle of the road, a trained professional from animal control, the game commission or your local fish and wildlife service can move it away for everyone’s safety. Know if you should file an insurance claim. An insurance professional like an Erie Insurance agent can help you make the decision based on the specifics of your auto insurance policy. Talking with someone you already know and who is familiar with the claims process can help put your mind more at ease. DOES MY AUTO INSURANCE COVER HITTING A DEER? You can’t always predict if a deer will walk into your path, but if one does, we’re here to help get you back on the road as soon as possible. At Erie Insurance, deer-vehicle collisions are covered under the comprehensive portion of your auto insurance, which is an optional coverage you can choose to add on. Learn more about how to customize your ERIE auto policy. An insurance professional like a Skyscraper Insurance agent can help you customize an auto insurance package that fits your needs and budget.
After the Hurricane, Dealing With Insurance Claims
As Hurricane ETA churned north this week, residents along the Atlantic coast were preparing to assess the possible damage to their homes, and to determine what their insurance policies will cover. Homeowners whose properties were affected by the storm should act as quickly as feasible to take stock of the extent and likely cause of any harm, said Amy Bach, the executive director of United Policyholders, a nonprofit organization that advocates for consumers. “Focus on figuring out: What happened to your home, and what damage did it cause?” she said. Generally, people expect that because they have paid for insurance coverage, they will be automatically reimbursed for any disaster-related damage, Ms. Bach said. But after confronting numerous costly disasters in recent years, she noted, insurers have increasingly shifted more risk to policyholders by taking steps like setting higher deductibles, increasing how much customers must pay out of pocket. And after a major storm, Ms. Bach added, insurers may also hire contractors for help in assessing the large number of claims submitted, and those firms may not have time to do thorough reviews. So it is worth spending the time to do your own assessment, make notes of your observations and take pictures to document any damage before making temporary repairs, Ms. Bach said. “These days,” she said, “people are always in for more complications than they expect in order to collect their benefit.” For example, water damage caused by rain coming through a damaged roof is probably covered by a homeowner’s policy, but water rising into a home from a storm surge is considered flooding and probably is not. Regardless of the specific type of damage, an insurer may arrive at a finding that differs from yours about whether repairs are covered. Photos of missing shingles or a gash in the roof can help bolster a claim. Standard homeowner policies generally cover damage to a home caused by wind and rain. But special hurricane deductibles often apply in coastal states, said Loretta Worters, a spokeswoman for the Insurance Information Institute, a trade group. A homeowner policy’s general deductible is often a flat amount — $500, say, or $1,000. But if the damage occurred during a hurricane, the deductible may be higher, typically based on a percentage of the home’s insured value. The amount usually ranges from 1 to 5 percent, but it can vary by state and insurer and may run higher for homes in high-risk areas. If your home is valued at $350,000, for example, your hurricane deductible could be $3,500 or more. The policy will also define the deductible’s “trigger,” such as when the National Weather Service officially names a tropical storm or declares a hurricane warning. Most homeowner policies, however, exclude damage from flooding, even if it is caused by a hurricane’s storm surge, Ms. Worters said. For flood coverage, you need a separate flood policy. Most flood policies are sold by the National Flood Insurance Program, although a few private insurers sell them, too. Rates for flood insurance reflect several factors, including the year a house was built, its elevation and whether it is in a flood-prone area. The average annual flood premium is about $700, Ms. Worters said. But premiums can be much steeper in high-risk areas. New flood policies typically do not take effect until 30 days after they are bought. “You can’t buy flood insurance when a hurricane is coming,” Ms. Worters said. The federal flood program has come under scrutiny in recent years, as the cost of cleaning up after intense storms has increased. Various plans have been proposed in Congress to make flood insurance more widely available and to ensure that rates reflect the risk to the insured property. The next deadline for the program’s reauthorization is Sept. 30. Flood damage to your car is covered by your auto insurance policy, if you carry optional comprehensive coverage, according to the National Association of Insurance Commissioners. Although it may be challenging to find a contractor soon after a major storm, Ms. Bach also recommended obtaining an independent quote for repairs, if possible, rather than simply accepting the amount set by your insurance company. But consumers should take care to avoid fraudulent contractors who prey on disaster victims. Legitimate contractors will not demand cash upfront, the office of Florida’s chief financial officer warned in a Hurricane Dorian advisory. The office also alerted consumers to beware of impostors who claim to be representatives of the Federal Emergency Management Agency and ask for money to help file insurance claims or obtain disaster assistance. “FEMA does not charge for this service and does not go door to door in this capacity,” the office said. If damage to your property is relatively minor, and the cost of repairs is unlikely to top your deductible, consider not filing a claim, Ms. Bach said. You may not receive any payment, she said, and you will have a record of a claim that could end up increasing your annual insurance premium. “We recommend using common sense,” she said. Here are some questions and answers about hurricanes and insurance: How many states have insurance policies with hurricane deductibles? Nineteen states and the District of Columbia have special hurricane deductibles, according to the Insurance Information Institute: Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas and Virginia. Where can I find my insurance policy’s hurricane deductible? You can usually find it on your policy’s first or “declarations” page, often in larger type or a bright color that makes it visible. When does hurricane season officially end? The Atlantic hurricane season runs from June 1 through Nov. 30. Even as Dorian was moving up the coast, other tropical storms were forming far out over the ocean.
TODAY IS THE DAY FOR MAXIMUM IMPACTS FROM TROPICAL STORM ETA IN SOUTH FLORIDA
TODAY IS THE DAY FOR MAXIMUM IMPACTS FROM TROPICAL STORM ETA IN SOUTH FLORIDA The center of Tropical Storm Eta is just moving off the north coast of Cuba and into the Straits of Florida. But the bands of heavy rain and gusty winds already extend well north of the center, and will increasingly rotate over South Florida and north to the Treasure Coast and Central Florida through the day. Maximum impacts come later today and tonight. Eta was slightly wounded in its transit over Cuba, but it should reorganize quickly. Although in this case, reorganization does not mean a storm with a defined eye and strong winds in an eyewall near the center of circulation. The maximum winds somewhere in the circulation are forecast to increase slightly as the center moves closer to South Florida through the day. Most of the strong winds will be in bands, and may be well away from the center. It’s not out of the question that the peak winds in some of the bands could reach 75 mph – hurricane strength – but for the most part they are expected to stay below that threshold. Because of that possibility, however, a Hurricane Watch, meaning that hurricane-force winds are possible, is in effect for Broward, Miami-Dade, and the Keys. This is NOT a situation where we should concentrate on the forecast cone and where the center of the storm is predicted to track. The overall gustiness of the winds will be higher within about 100 miles of the center, but the energy in this storm is very spread out. A sharp dip in the jet stream interacting with Eta has created a comma-shaped storm with the strong winds and heavy rain north and east of the center. Even as the storm arcs to the left, with the center passing over or near the Keys tonight and tomorrow, the bands of weather with strong winds will extend north as far as Central Florida and east over the Bahamas. On the Miami-Dade and Broward County coasts, bands of heavy rain with increasingly strong wind will migrate slowly from south to north. Late this afternoon into the overnight, some wind gusts are predicted to exceed 60 mph, with a few perhaps near 75 mph. Rain in some of the bands will be extremely heavy, so flooding is a significant threat – especially considering the ground is saturated from the previous heavy rain this year. The National Weather Service is now predicting a widespread 6 to 12 inches of rain with some spots getting up to 18 inches. Heavy rain is predicted to cover the entire southern Florida peninsula as far north as Central Florida over the next couple of days. Because the wind will so persistently blow onshore, the ocean and bay water along the coast in South Florida, the Keys, and Southwest Florida, may rise as high as 2 to 4 feet above normal high tide. High tides will come the early afternoon and very early morning hours, so since the wind should be highest later today, the concern will be during the early overnight for flooding of low-lying areas along the coast and the inland waterways. If your neighborhood flooded during the King Tides, be sure to park your car on high ground tonight, be aware of water levels late this evening and in the hours around and after midnight, and pay attention to any instructions from your local officials about the possibility of flooding and what action you should take. We have the possibility of isolated tornadoes in some of these bands, but as a general rule, you protect yourself from these tornadoes like you do from the strong winds. Stay away from the windows when the winds are really blowing outside. The winds in the tornadoes are not much higher than in the strongest gusts. In the Keys, monitor the exact track of the center of the storm. This has less to do with the strength of the winds than the direction the wind is coming from. If the storm tracks down the Keys, as now seems possible, the wind ahead of the center will come off of Florida Bay, which will push water in from the north. The wind behind the storm will push water off the Atlantic. It appears right now that the Middle and Lower Keys will be most affected by a possible 2 to 4-foot water rise from Florida Bay, if it occurs. All of the Keys are subject to bands of high wind from late today through daytime tomorrow, at least. On the southeast coast, winds will start to decrease tomorrow, but it will be a noticeably breezy day, especially in any leftover rain bands. We should see more breaks in the rain, however, since dry air is forecast to wrap into the storm creating slots without rain. Eta is forecast to slowly move into the Gulf tomorrow and Tuesday. Its future path is unclear, as is its future strength. The computer forecast models present a range of possibilities. There is a reasonable chance, however, that it stays in the Gulf for a while pulling bands of tropical moisture over the Florida peninsula that contain gusty downpours. The threat will be for more rain on top of the rain we get this weekend, so we’ll have to stay aware. Before the winds pick up today, be sure your phones, computer, tablets, etc. are fully charged, along with any back-up batteries if you have them. Bring in anything that can blow around in your yard or on balconies. And tonight, keep flashlights with fresh batteries handy. Be very conscious of where you park your car today. Avoid trees and low-lying areas, even if you have to walk a ways to find a safe place, you’ll be happy you did if branches come down or the street floods. Parking garages are a good alternative if there is one nearby. Use good sense through this. It’s going to be nasty.
Tropical Storm Eta
Tropical Storm Eta is lashing the Caribbean with torrential rainfall and damaging winds on Saturday as it approaches Cuba. The storm is currently moving northeast away from the Cayman Islands and toward central Cuba at 13 mph as of 10 p.m. ET. It has sustained winds of 65 mph with tropical storm-force winds extending up to 115 miles out from the storm’s center. The center of the storm is forecast to cross central Cuba Saturday evening and approach south Florida and the Florida Keys on Sunday. Eta will then pass near or over south Florida and the Florida Keys Sunday night and Monday, according to the latest advisory from the National Hurricane Center.
Florida in the path of Eta and it could become a hurricane again
The 2020 hurricane season continues its relentless onslaught as Eta, the 28th named storm of the season, lashes Central America with torrential rains and whipping winds. Typically Central America is a graveyard for hurricanes — but not Eta. Increasingly, forecasters are concerned Eta will reemerge over the warm Caribbean waters and then head toward Florida this weekend. Eta was weakening over land overnight and the one-time fierce hurricane was a tropical depression as of 4 a.m. EST Thursday, according to the U.S. National Hurricane Center in Miami. But Eta is expected to head into the Caribbean Friday and move northeastward. The models show the system reorganizing, with some modest restrengthening this weekend over the Caribbean and the Florida Straits, north of Cuba. On this path at least two more landfalls seem likely: Cuba on Sunday and possibly South Florida on Monday. If Eta makes landfall along the U.S. coastline, it would break the record for the most named storms to make a U.S. landfall in a season, at 12. If it regains hurricane strength, that would break the record for most landfalling U.S. hurricanes. As of overnight Thursday, Eta was directly over central Honduras and continuing to move west, deeper into Central America. The system is forecast to keep dumping torrential rains and cause flash flooding. The hurricane center said it “will likely degenerate to a remnant low or trough of low pressure” Thursday morning. So far, Eta has been blamed for at least four deaths. Later this week, Eta will begin to feel the influence of upper-level steering to its north causing the storm to make a hard right turn, pushing it back over the hot northern Caribbean waters. While some intensification is likely, it will be limited, at least initially, because Eta will have to contend with some dry air, upper-level wind shear, interaction with the landmass of Cuba, and limited time. By Saturday the system will cross over Cuba, likely as a tropical storm, and then head toward South Florida. It is still uncertain how strong Eta will be and the degree to which the storm will impact South Florida. Most likely Eta will either be a strong tropical storm or even a low-end hurricane. Some models show a direct hit, while others show a glancing blow over the Florida Keys. Regardless of exact track, Eta will bring a stretch of very wet weather across South Florida from Friday through early next week. Depending on the track, over a foot of rain seems likely in some spots. After the storm passes South Florida, most models then show it snaking back westward into the Gulf of Mexico early next week. Gulf waters are still warm enough for Eta to once again regain strength. Although it is too early to know if and where another landfall could take place, some guidance suggests yet another Gulf Coast landfall is possible by the middle of next week.
As Healthcare Industry Evolves, Michigan’s Largest System Reports Second Breach in 12 Months
Michigan’s largest healthcare system recently announced a data breach that may have compromised 6,000 patients’ protected health information. The breach reportedly occurred after six employee email accounts were exposed in a phishing scam in January. The eight-hospital network with 167 outpatient locations, notified patients on July 28 of a “data security incident” that could have exposed patient names, dates of birth, diagnoses, procedures and treatment information. The health system reports the number of patients involved in the breach reflect less than 0.3 percent of its 2.3 million patients. “Healthcare systems are experiencing a severe increase in data breaches in today’s world. Breaches are growing in size as additional patient records are being exposed in attacks.”–Derek Kilmer, Burns & Wilcox The health system concluded its investigation on June 3. Though officials said they have no evidence compromised data was viewed or acquired by a third party, it notified patients “out of an abundance of caution” and asked them to monitor their insurance statements for care they did not receive. Michigan’s largest healthcare system recently announced a data breach that may have compromised 6,000 patients’ protected health information. The breach reportedly occurred after six employee email accounts were exposed in a phishing scam in January.The eight-hospital network with 167 outpatient locations, notified patients on July 28 of a “data security incident” that could have exposed patient names, dates of birth, diagnoses, procedures and treatment information. The health system reports the number of patients involved in the breach reflect less than 0.3 percent of its 2.3 million patients. This breach marks the healthcare system’s second such incident within the last 12 months. In April the network reported a phishing scam involving 112,000 patients’ information. “Healthcare systems are experiencing a severe increase in data breaches in today’s world,” said Derek Kilmer, Manager, Professional Liability, Burns & Wilcox, Detroit/Farmington Hills, Michigan. “Breaches are growing in size as additional patient records are being exposed in attacks.” That increase comes as healthcare organizations also face unprecedented difficulties in other areas. Hospitals have struggled financially amid the COVID-19 pandemic, with some losing millions of dollars per day from delayed elective procedures and many laying off staff. The current landscape has heightened awareness of the need for Cyber and Privacy Liability Insurance, Professional Liability Insurance and other protections. “The lack of elective procedures has created a deep hole to dig out of,” said Karl Olson, Vice President, Professional and Management Liability Practice Leader, Skyscraper Insurance, “Utilization rates have plummeted. A large percentage of hospitals may be financially insolvent by the end of the year. Healthcare breaches are uniquely expensive, require specialized protection Healthcare data breaches are on the rise in both the U.S. and Canada, with ransomware attacks and phishing scams causing a significant percentage of breaches. “Cybercriminals have not taken a break,” Olson said. “Healthcare entities are targets because of the large volume of data that they store, process or have access to. Many also struggle to adequately fund their data security.” The number of healthcare data breaches involving 500 or more records increased 196 percent from 2018 to 2019, according to HIPAA Journal. In February alone, 1,531,855 individual health care records were breached. While the average total cost of a data breach has increased from $3.54 million in 2006 to $8.9 million in 2019, the average cost of a breach for healthcare organizations can run much higher. A data breach cost per record in many industry sectors is less than $300 per compromised record, Kilmer explained, but heavily regulated industries, such as healthcare, pharmaceutical, financial, energy, and education, have a per capita data breach cost of well over $400.“Costs can add up quickly, especially if each incident impacts thousands or potentially millions of records,” he said, noting that the number of data points contained in a single patient’s record adds to the complexity of recovering from an attack. “Healthcare records can include Social Security numbers, name, address, phone numbers, and more. The information a hacker can exploit within an individual’s health record is potentially quite large and can take an immense amount of time to track down, leading to additional expenses.” As more breaches occur, particularly during the pandemic, healthcare organizations rely on Cyber and Privacy Liability Insurance to help mitigate their losses and maintain operations. Cyber and Privacy Liability Insurance policies can include coverage for paying or negotiating ransoms, such as in 2016 when a California hospital paid hackers $17,000 after a ransomware attack that held its computer network hostage. Such policies can also help mitigate the costs of bringing in specialized cybersecurity attorneys and forensic teams to assist in the response. According to the 2019 American Medical Association-Accenture Medical Cybersecurity Survey, 36 percent of healthcare institutions were rendered incapable of providing care for at least five hours following cyberattacks. The 2020 IBM Security Cost of a Data Breach report indicated that the healthcare industry had the longest average breach lifecycle of any industry—329 days. “It can take years for medical fraud to be discovered,” Kilmer said. “Healthcare organizations should have a plan in place that allows them to get up and running as quickly as possible after an attack with the lowest possible number of patient files exposed.” Beyond the direct costs of a cyberattack, the bulk of data breach expenses are related to reputational damage and customer turnover in the aftermath of an incident, according to Kilmer. “Healthcare breaches continue to push customers away,” he added. “Given the current financial hardships hospitals are having due to absence of elective surgeries, a breach can set back these institutions even further.” When an organization is hit multiple times it can have a negative impact on its insurance underwriting options, Olson noted, adding that “underwriters are asking for much more in-depth information than they have in years’ past.” Telemedicine, equipment shortages among other growing healthcare liabilities Even as medical professionals stand on the front lines of the COVID-19 pandemic, hundreds of U.S. hospitals face bankruptcy and some, especially in rural areas, may close. Hospitals laid off 1.4 million workers in April alone and a record number of nurses have lost their jobs. These conditions could add to already rising medical liability costs at a time when 34 percent of physicians are sued at some point in their careers. Beyond cybersecurity risks, healthcare entities expect a wave of lawsuits related to the pandemic as well as the corresponding rise in telemedicine. While some
Crews bringing wildfires under control in Central Wash.
ONASKET, Wash. – Firefighters are gaining the upper hand on two wildfires burning in north central Washington state despite the intense, record-breaking heat which has gripped the region, the State Patrol reports. The Anglin Fire, which broke out Monday afternoon about eight miles east of Tonasket, is now 50% contained and all mandatory Level 3 evacuation orders have been lifted. A Level 2 evacuation order is still in effect for homes on Rehmke Road south of Siwash Road, meaning that residents there should be prepared to leave on a moment’s notice. Residents of the Cayuse and Island Mountain areas are under a Level 1 evacuation, which means they should be aware of possible danger and monitor emergency servies websites. The Green Fire, which broke out Monday afternoon in steep, rattlesnake-infested terrain about one mile northwest of Synarep, Wash., is now 90% contained, and residents there are under a Level 1 evacuation order. Smoke from the interior of the fires may remain visible over the next several days, officials said, and firefighters are closely monitoring these areas. A weather front is expected later Thursday that could bring a threat of dry lightning across north central Washington.
1st 2020 hurricane: Hanna makes landfall on Padre Island, Texas
Hurricane Hanna, the first hurricane of the 2020 Atlantic Hurricane Season, strengthened Saturday evening before making landfall at 6 p.m. EDT on Padre Island, pummeling the southeast Texas coast with 90 mph winds. As of 5 p.m. Saturday, the National Hurricane Center reported the system was moving west-southwest at 8 mph and a west-southwest motion is expected to continue through Sunday. The storm was about 70 miles south of Corpus Christi. The center of Hanna will now move inland over south Texas tonight and move into northeastern Mexico on Sunday. Rapid weakening is expected after Hanna moves inland. Hurricane-force winds extend outward up to 30 miles from the center and tropical-storm-force winds extend outward up to 90 miles. The estimated minimum central pressure is 973 mb. Forecasters increased the expected rainfall totals in its update, saying that Hanna could bring 6 to 12 inches of rain and coastal swells that “are likely to cause life-threatening surf and rip current conditions,” the advisory stated. A hurricane warning was in effect for Port Mansfield, Texas, to Port Aransas, Texas. Hanna broke the record as the earliest eighth Atlantic named storm, according to Colorado State University hurricane researcher Phil Klotzbach. The previous record was Harvey on Aug. 3, 2005, Klotzbach tweeted. Far out in the Atlantic, the next system could become Isaias by Monday.
Preliminary magnitude 7.8 earthquake strikes off coast of Alaska
An earthquake with a preliminary magnitude of 7.8 struck off the coast of Alaska early Wednesday morning. The earthquake was centered 60 miles, or 98 kilometers, south-southeast, of Perryville, Alaska, according to the US Geological Survey. The quake is considered shallow at about six miles, or 10 kilometers, deep. “Anything below 70 kilometers is considered a shallow quake,” CNN meteorologist Allison Chinchar previously said. “That’s important, because shallow earthquakes often cause the most damage, compared to the ones that are deeper, regardless of the strength.” A tsunami warning had been issued following the earthquake, according to the National Oceanic and Atmospheric Administration. The warning was in effect for south Alaska and the Alaska peninsula — Pacific coasts from Kennedy Entrance, Alaska (40 miles southwest of Homer) to Unimak Pass, Alaska, according to the Tsunami Warning Center. But all tsunami warnings and advisories were canceled early Wednesday morning, according to the National Weather Service. Earthquakes are more likely to develop into tsunamis if they are high in magnitude, are shallow, and are thrust earthquakes rather than strike slip earthquakes, according to the USGS. Quakes between magnitudes 7.6 to 7.8 have the potential to produce destructive tsunamis. There have been at least 11 after shocks ranging from magnitudes of 3.9 to 6.1, according to CNN meteorologist Pedram Javaheri.