insurance

Insurance company executives warned Gov. Gavin Newsom in a letter Wednesday that his plan to shift utility wildfire liability to property insurers would raise premiums across California.

“The party whose equipment ignites a catastrophic fire should bear the economic consequence of that fire,” the 15 executives wrote. “Shifting those costs to policyholders does not reduce the cost of electricity but does make homeownership more expensive and insurance coverage harder to find.”

As the legislative session nears its end, Newsom’s staff and lawmakers have been negotiating behind closed doors on a deal to limit utilities’ wildfire liabilities.

According to a confidential document that Newsom’s staff sent to lawmakers and was obtained by Politico, the governor wants to stop property insurers from recouping their losses from homes destroyed in utility-sparked wildfires.

That could increase homeowners’ property insurance rates by as much as 50%, according to the Personal Insurance Federation of California. The highest hikes would be for those families living in severe fire risk areas.

“The proposal would shift billions of dollars in wildfire costs away from utilities and onto insurance consumers across the state, making coverage more expensive and harder to find,” said Denni Ritter at the American Property Casualty Insurance Assn.

Southern California Edison and the state’s two other big for-profit utilities have been lobbying Newsom and lawmakers to further shield them and their shareholders from wildfire liabilities ever since last year’s Eaton fire caused the price of their stock to tumble.

Government fire investigators said the fire, which killed 19 people and destroyed thousands of homes, was caused by electrical arcing on Edison’s out-of-service transmission line in Eaton Canyon. Edison kept the line in place despite not using it since 1971.

More than 11,000 households have filed suit against the utility, claiming it acted negligently, which the company denies.

Edison is offering settlements to victims of the Eaton fire. A $21-billion state wildfire fund that Newsom and lawmakers created in 2019 to protect the state’s three big utilities from bankruptcy after a fire is reimbursing Edison for its payments to victims.

At a press conference Wednesday, Newsom defended his plan, which also includes limiting the fees of attorneys in wildfire litigation and stopping hedge funds from profiting on the claims.

Newsom said that current law allows insurers to be paid before victims after a fire.

“The insurance industry is going to do everything to make sure they get paid first,” Newsom said.

No legislation has yet been filed to end what are called insurers’ subrogation claims. The legislative session ends Monday at midnight. The short time frame would allow for little public debate of a bill filed this week.

According to the document written by Newsom’s staff, the governor also proposed reducing amounts that local governments receive from utility-caused fires. The California State Assn. of Counties said that would shift costs to local taxpayers.

“Shifting wildfire costs to local governments is unjustified when utilities continue to generate significant profits and return billions to shareholders,” the association said in a brief recently sent to lawmakers.

Newsom also wants to reduce payments that fire victims can receive for non-economic damages including pain and suffering, angering victims of the Eaton fire.

More than 50 Eaton wildfire victims showed up to protest in front of the governor’s mansion on Monday night in Sacramento, where Newsom was holding an event for legislators.

They chanted, “Who should pay? Shareholders should pay!”

U.S. Immigration and Customs Enforcement is pitching a plan to help shield local police officers who make immigration arrests from possible financial consequences if they are accused of on-duty misconduct.

The agency is proposing to subsidize liability insurance for state and local officers who are trained and deputized to enforce federal immigration laws, according to a planning document published Friday.

ICE’s partnerships with local departments have soared since President Trump returned to the White House last year and may get an additional boost with liability insurance by removing a hurdle that has made some local police departments reluctant to join. The Associated Press is the first to report on this insurance proposal.

Under the plan, officers would purchase insurance covering up to $500,000 in personal liability, which typically funds legal fees, settlements and judgments. Officers would be reimbursed up to $250 annually — roughly what the insurance is expected to cost.

One prominent critic of ICE’s immigration crackdown said the program would be yet another way for officers to avoid personal accountability for misconduct.

“The concern here is that ICE is going above and beyond to guarantee law enforcement does not have even the slightest risk of liability for violating Americans’ rights while helping ICE arrest people,” said David Bier, director of immigration studies at the Cato Institute, who has called on Congress to make it easier to sue ICE agents for wrongdoing.

ICE outlined the plan in a document informing industry officials that it is considering hiring a contractor to help provide outreach, training and communications support for its so-called 287(g) partnerships with local departments, which are named for a section of a 1996 immigration law. The contractor would hire the insurance vendor and process the reimbursements, among other tasks.

ICE has asked for industry feedback by Thursday. The proposed timeline for launching the program and its estimated cost are unclear.

ICE had no immediate comment on the plan.

Arrests by ICE’s local partners have spiked since last year

During Trump’s second term, ICE has offered generous financial incentives to participating local agencies, increasing the number who have partnered with the federal government, as well as the number of arrests.

Nearly 1,600 agencies in 32 states now have agreements to participate in ICE’s task force model, in which trained local officers can interrogate, arrest and charge people suspected of being in the country illegally, according to ICE data.

Departments qualify for funding to help cover expenses like their officers’ pay, equipment and vehicles. With encouragement from state and local Republican officials, agencies in Florida, Texas, Oklahoma and Georgia have been among the leaders.

Arrests made through such programs jumped to an average of 3,000 per month in the first two months of 2026, according to the most recent ICE data provided to the University of California Berkeley’s Deportation Data Project. That compares to a monthly average of 250 in 2024 under President Biden.

Local departments, officers worried about liability for ICE work

As local officers increasingly carry out federal immigration work, they and their departments have expressed concerns about the civil liability that could result from claims alleging excessive use of force, wrongful arrest and illegal search and seizure, among other things.

That’s because insurance policies that cover their local work may not apply. Pennsylvania’s risk pool, for instance, recently made clear that it would exclude “proactive immigration enforcement activities” from coverage, forcing several participating counties to search for other insurance options.

Butler County Sheriff Michael Slupe said he found insurance to cover his 13 deputies participating in the program at a cost of $20,000 in annual premiums.

“I want to make sure the guys are additionally covered, so we had to spend the money,” he said, adding that federal funding would cover the cost.

Federal officers usually enjoy legal immunities and a government-funded defense when they face lawsuits. But those protections may not always apply to local officers, which has heightened their concerns over liability and the need for insurance.

Although civil lawsuits are the main concern, professional liability insurance typically helps cover legal fees for officers facing criminal investigations as well.

Sheriffs’ group says ICE’s insurance idea sounds promising

Justin Smith, a former Colorado sheriff who is executive director of the National Sheriffs’ Assn., said ICE’s plan sounds promising and that he was eager to speak with ICE about how the plan would work.

Smith said he has shared concerns with ICE that some sheriffs are reluctant to join the partnerships because of the potential liability at a time when immigration enforcement faces intense public protests and media scrutiny. Smith said others who are partnering with ICE have already started facing legal claims tied to their immigration work, which can be costly whether or not deputies are ultimately found to have done anything wrong.

“Right now, any time you are working on immigration there is going to be a much higher potential for there being problems and having suits and issues,” he said. “They’re recognizing that it is a different environment. And I think trying to be good partners with us as best they can.”

Under their agreements, ICE warns local departments that they are responsible for the costs of incidents that give rise to liability. But it seeks to reduce the risk by saying local officers performing ICE-authorized functions are “acting under color of federal authority,” which would bar lawsuits against individual officers.

The agreements also state that local officers who face civil lawsuits can ask the U.S. Department of Justice to represent them, and that ICE will generally support their requests. But the final decision on whether to do so rests with the department.

Foley writes for the Associated Press.

If your destination falls victim to a wildfire or other extreme event, what should you do, and can you get your money back? A consultant for independent financial research company Defaqto has explained what Brits need to look out for

Many Brits will be heading off to Spain for the busy summer season in the coming weeks, and no doubt seeing the headlines about wildfires will cause some alarm if you’ve got a holiday booked.

Wildfires broke out in the Almería province of Spain last week. So far 13 people have been confirmed dead, among them, seven Britons. Almeria is part of the Andalusia region, and is popular with expats and holidaymakers. The Foreign, Commonwealth & Development Office (FCDO) recently updated its advice for anyone travelling to Spain.

It said: “If you are in an area affected by the wildfire follow instructions from local authorities and emergency services at all times, avoid travelling into or through the affected area, and follow updates from the emergency services.”

People who were planning trips to Andalusia and other areas of Southern Europe suffering from wildfires and other extreme weather events may be wondering where this leaves them. Anna-Marie Duthie, an insight consultant at independent financial research company Defaqto, gave her thoughts.

Anna-Marie said: “If your airline cancels your flight due to wildfires, they should offer you the chance to rebook, or provide a full refund. If your holiday was booked as a package, this refund should cover all elements — flights, accommodation and transfers.

“But if you’ve booked everything separately, you’ll need to deal with each provider independently. Your airline may refund your flight, but your accommodation provider may not if the property is unaffected. This is why it’s essential to speak directly with providers in the first instance and check with your insurance provider regarding the cover they include.”

Travellers should regularly check the FCDO website to see tailored advice for their destination and ensure no travel warnings are in place. Anna-Marie said: “If government advice changes, advising against travel to the area after you have booked your trip, then you may be covered for cancellation or curtailment.

“You may also be covered for additional travel and accommodation costs should your trip be disrupted due to a catastrophic event, if your insurer offers this cover or you’ve paid to include it.”

Anna-Marie believes that extreme weather events could affect the travel insurance industry in future, saying: “Whilst it’s difficult to know exactly how travel insurance may change over the next decade, longer term there is a chance that we may end up seeing less insurable destinations and increased premiums. What we do know, however, is that travel insurers are used to having to adapt to an ever-changing world.”

But she added: “It is unlikely and we are yet to see any immediate changes to policies because of the current heatwave. It is unlikely insurance providers will change their policies in the near future to incorporate extreme heat. Current clauses may refer to ‘severe’ or ‘extreme’ weather, but the definitions for these can vary and currently no providers go as far as to specify criteria such as maximum temperatures.

“Where the heat causes events such as the current wildfires, this is a separate consideration and would be classed as a catastrophe or natural disaster. Cover for this will all depend on your insurer’s definitions and extent of benefits.”

Have a story you want to share? Email us at webtravel@reachplc.com

Jakob Davies, 25, suffered severe injuries after falling from a three-storey balcony during a stag do in Albufeira, Portugal, as his family launches a fundraiser to help him

The devastated family of a Brit who plunged from a three-storey balcony during a stag do in Portugal fear his travel insurance may not cover his mounting medical bills because he had been drinking.

Jakob Davies, 25, remains in hospital in Faro after suffering catastrophic injuries in a fall at a hotel in Albufeira earlier this month. His loved ones say they are still waiting to hear whether his insurer will pay out after tests showed alcohol in his system.

The factory worker, who is from Scarborough, North Yorkshire, had travelled to the Portuguese party hotspot with around 30 work colleagues for a stag weekend on June 4.

His mum, Claire Gerrard, fears the family could be left facing huge costs after doctors warned Jakob he may never walk again without urgent surgery.

The 51-year-old woman said: “He’s totally on his own. I need to know what’s going to happen to him. He was told if you don’t have this operation immediately then you won’t walk again.

“He does have travel insurance but because of the alcohol that he’s drunk it’s not looking like they will pay. We’ve contacted the insurance company and they wanted all the reports so I sent the reports.

“The doctor gave Jakob his alcohol levels with his bloods done and it did show alcohol in his system, which unfortunately they will not pay out.

“25 [years old] on a stag party he’s not going to have none is he? They’ve not said no yet, we’re still waiting on information. I think it should be made more clear to people, especially to youngsters. You’re going on holiday to a stag party and you can’t drink, they don’t listen, they just go and have a drink.”

Jakob had chosen to stay behind at the accommodation on June 5 to play football while the rest of the stag group headed out.

But when his friends returned later that day, they were alarmed to see fire engines, police cars and ambulances rushing towards their hotel.

Claire expained: “I think there were about 30 of them and it was somebody from work’s stag party. It’s all really, really vague, Jakob has no recollection of it whatsoever.

“He had been playing football with some other guys, his party were leaving and Jakob had said ‘I’m going to continue to play football’.

“I don’t even think he remembers playing football but that’s what he was doing. When the party was returning back to the hotel there were fire engines flying past and then the police came past and then the ambulances came past and had turned into their hotel so they thought ‘oh gosh something is going on’.

“When they got there Jacob was unconscious on the floor with severe head injuries and broken bones, it looked pretty horrific initially. When they got him in the ambulance, he had regained consciousness and he was speaking but he wasn’t aware of what had happened.”

Believed to have fallen from a three-storey balcony, Jakob was initially taken to a local hospital before being transferred to a larger hospital in Faro.

Doctors later discovered he had suffered a serious head injury, broken feet and ankles, as well as fractures to both his L1 and L4 vertebrae.

Recalling the moment she learned about the horror fall, the worried mum said: “I got a phone call at around 11am on Saturday morning [June 6] to say Jakob’s fallen from a three-storey balcony. My initial feelings from then on were absolute dread.”

As Jakob continues his recovery overseas, family and friends have launched a GoFundMe appeal to help cover medical expenses and the cost of bringing him back to the UK.

Travel insurance experts warn that some policies contain exclusions relating to alcohol or drug use, although terms and conditions vary between providers. Holidaymakers are urged to check the small print of their policies before travelling, particularly if they are planning to drink while abroad.

To donate to the GoFundMe, click this link.