Efficient proximate cause. Disputes often arise as to what is considered to be the efficient proximate cause of a claim. (Photo: Shutterstock)

Courts have long been split on which of two legal theories of recovery appropriately apply in cases when some causes of damage are covered under an insurance policy and others are excluded. Concurrent causation is the legal doctrine that applies when loss or damage occurs because of two or more causes, one that is covered, such as negligence on the part of a third party, and one that is excluded, such as flooding.

An example of concurrent causation is when earth movement causes damage to an insured structure, a cause of loss that is specifically excluded under the property causes of loss form. However, the insured claims that the cause of loss was actually a third party’s negligence in bulldozing a slope above the dwelling, arguably a non-excluded peril under an open perils policy. In jurisdictions that apply concurrent causation, coverage is found if the non-excluded peril played any part in the loss.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Hannah Smith JD

 

Complex Claims & Litigation Forum 2023Event

Aimed to help Insurers prevent, prepare and prevail In adjudicating complex claims, negotiating settlements and winning cases.

Get More Information
 

African Legal Awards (AFLA) 2022Event

The African Legal Awards recognise exceptional achievement within Africa s legal community during a period of rapid change.

Get More Information
 

The British Legal Awards (BLA) 2022Event

Celebrating achievement, excellence, and innovation in the legal profession in the UK.

Get More Information
 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2022 ALM Global, LLC. All Rights Reserved.