Arizona proposes law that would shift wildfire liability from utilities to insurers

Arizona lawmakers are debating a bill that would protect utilities from wildfire-related lawsuits, a move that would likely send shockwaves through the insurance industry. The bill would make it harder to prove that utilities are to blame for wildfires started by faulty or poorly maintained equipment while also limiting damages. In exchange for reduced liability, utilities would need to file plans every two years detailing the steps they’re taking to limit the risk of wildfires. The bill, as currently written, doesn’t really require utilities to stick to those plans. If a utility doesn’t follow its plans or is negligent in maintaining its equipment, it is still protected from claims. The insurance industry has been reeling from wildfires, and the bill could have the unintended effect of shifting the burden of wildfire claims from utilities onto homeowners’ insurers. “There’s no free lunch in this,” Marcus Osborn, an insurance company lobbyist, said at a public hearing on the bill. ... Read full article.