(SORRY, COULDN'T RESIST).
Putting aside immunity issues for the moment, insurance coverage issues spring up out of the current Michigan Emergency Manager story. I want to avoid claims that have already been alleged, so I will take a look at a claim that has not yet been alleged, to my knowledge: Negligent retention.
If Governor Rick Snyder, cost-conscious to a fault, could be exposed to liability concerning his continued retention of Emergency Manager Darnell Earley, first in Flint and then in Detroit where Mr. Earley is equally cost-conscious it seems, would there be coverage or an exclusion from coverage under these known facts?
Test results were apparently known that Flint was drawing water from a less expensive but polluted source, although it is equally apparent that the test results were not only ignored but also that the people who reported them were dismissed and disrespected. Yet, Governor Rick Snyder kept Flint's Emergency Manager on the payroll, so to speak.
Insurance coverage in the face of these facts? What do you think?
Please Read The Disclaimer. ©2016 by Dennis J. Wall, Co-Author of "Catastrophe Claims / Insurance Coverage for Natural and Man-Made Disasters" (Thomson Reuters November, 2015). All Rights Reserved.
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