A large group of London insurers forming the English & American Underwriting Agency Pools (“EAUA”) has set April 11, 2011, as the final date to file claims. EAUA policyholders must file claims and supporting documentation by April 11 or their claims will be forever barred.
Many Lloyd’s & London Market policies from 1952 to 1992 include EAUA coverage. Therefore, many American companies have EAUA coverage (whether they know it or not) for their past or even potential liabilities for claims such as asbestos, pollution, silica, environmental, health hazard or similar long-tail claims.
Filing claims with London insurers often makes good business sense, resulting in significant payments to claimants. The dominant insurer in the EAUA, English & American Insurance Company, expects to pay the bulk of its $188 million in funds to policyholders over the next year or so. Policyholders who submit claims are predicted to receive upward of 43 cents on the dollar for their agreed claims. Notably, the EAUA claims process is designed to pay claims that are based on past costs and/or estimated future liabilities.
The EAUA is comprised of 16 insurers. In addition to English & American (formerly Providence Capitol and Slater Walker), the EAUA includes other notable insurers such as Insurance Corporation of Singapore (U.K.) Limited, City International Insurance Company Limited and Tower Insurance Limited. For a complete list of the participating insurers and more information regarding claim requirements, visit this website.
What You Should Do
If your company – or its predecessor companies – has incurred, or may incur, potentially-covered costs or liabilities (e.g., clean-up costs, legal defense costs, settlement payments, etc.) and was insured by Lloyd’s and the London Market, chances are that you need to file a claim with EAUA before the April 11, 2011, deadline to protect your rights. The time to act is now. Companies that fail to act by April 11 may lose valuable coverage for their known and estimated liabilities.