October 1, 1999
examine closely their
policies for potential insurance
coverage for Year 2000
Computer Bug (“Y2K”)
related remediation costs.
This is especially important in the wake of the
GTE action filed against several property insurance
companies and also the recent Wall Street
Journal article addressing insurance company
efforts to battle property insurance coverage for
Y2K related claims.
While many insurance companies scramble to
impose last minute blanket computer malfunction
exclusions into the property insurance policies
that they sell, policyholders should be examining
the extent of currently existing insurance
coverage for Y2K-related remediation costs. It
may be critical for many policyholders to lock-in
Y2K property insurance coverage now as their
insurance companies seek to eliminate all future
Y2K property insurance coverage.