BUT WAS IT COVERED?
Insurance coverage issues spring up out of the current Michigan Emergency Manager story. Again putting aside immunity issues for the moment, readers will recall that the voters of Michigan repealed Michigan's Emergency Manager law, then the people in control of the much smaller Michigan Legislature reinstated it.
If Michigan's Emergency Manager had been left where the people left it, namely, repealed and void, presumably Governor Snyder's appointed Flint Emergency Manager would not have been able to 'save money' by paying money for an 'alternative' source of water.
The disastrous decision to cut expenses of course resulted in poisoning children. So, if the legislators had not rather arrogantly reinstated the Michigan Emergency Manager law in time for the disaster, the disaster in all likelihood would not have occurred.
Is causation in fact a reason for insurance coverage here? See Paul Egan, "Is Emergency Manager Law to Blame for Flint Water Crisis?" (Detroit Free Press Online, posted October 25, 2015).
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.