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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117400
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Insurance Company was doing forensics on Company Servers that

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Insurance Company was doing forensics on Company Servers that crashed.
Agreed that one of three crashed and was covered, and said other two were fine.
Ships back other two (8 months later after investigation is over).

The other two are destroyed in documented accident by trucker (hired by Insurance Co) on way back to company (company was never in possession).
First server triggered business income loss, as company was shut down for a year. Insurance company will pay -- amount being determined.

For rest of servers (now company has ZERO servers, and data restoration on last two servers is significantly more expensive than first one), is there a higher level of care that is assigned to Insurance Company when servers in it's possession are damaged and the consequences to insured are severe? Or is the policy simply what it is. In other words, is getting closer to what actual restoral of business operations will cost be easier, or, again, is the policy limit the policy limit? I believe they would be considering this a second claim.
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

Unless you can prove the insurance company somehow denied your claim in bad faith, the policy limit is the policy limit I am afraid. If the servers were damaged in possession of the shipper, the shipper is liable for damage while in their possession. This also would be a second claim with the insurer as well and as the insurer hired the shipper, the insurer and shipper would be jointly liable and severally liable, meaning that you can pursue them together and separately and you can seek excess damages from the shipper up to the shipper's policy limits as well. However, if the insurer pays on the claim and you recover from the shipper, they could (depending on terms of your policy itself) be entitled to subrogation.

Subrogation is where the insurer is entitled to be reimbursed for anything they pay if you recover that money from a third party. If you can prove the damages recovered from the shipper were excess damages above the policy limits, then you could defeat the insurer's subrogation claims.

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