Accardi v. Hartford Underwriters Ins. Co.

**Accardi v. Hartford Underwriters Insurance Company** This case involved a dispute over how insurance companies calculate payouts when property is damaged. The main question was whether insurers could reduce the amount they pay by "depreciating" (lowering the value of) labor costs when determining what damaged property is actually worth. The plaintiff argued that insurance companies shouldn't be allowed to depreciate labor costs when calculating how much to pay for repairs or replacements. Hartford Underwriters Insurance Company disagreed, claiming they had the right to factor in depreciation on all costs, including labor. The court sided with Hartford, ruling that insurance companies can indeed depreciate labor costs when calculating actual cash value for insurance claims. Both the lower Business Court and the appeals court agreed on this decision. **What this means for workers:** If you have property insurance through your employer or personally, this ruling could affect how much you receive if you file a claim. Insurance companies can now reduce payouts by depreciating not just the cost of materials, but also the labor costs involved in repairs or replacements. This could result in lower insurance settlements than you might expect when property is damaged.