Accardi v. Hartford Underwriters Ins. Co.

**Accardi v. Hartford Underwriters Insurance Company** This case involved a dispute over how insurance companies calculate the "actual cash value" when paying claims. The main question was whether Hartford Underwriters could reduce (depreciate) labor costs when determining how much money to pay for covered losses. The plaintiff, Accardi, argued that insurance companies shouldn't be allowed to subtract depreciation from labor costs when calculating claim payments. Hartford Underwriters disagreed, saying they had the right to depreciate both materials and labor when determining actual cash value. The North Carolina Business Court ruled in favor of Hartford Underwriters. The court decided that insurance companies can legally depreciate labor costs when calculating actual cash value for insurance claims, not just material costs. **What this means for workers:** This ruling could affect workers whose personal property or business equipment is covered by insurance policies that use "actual cash value" calculations. When filing insurance claims, workers may receive lower payouts because insurers can now reduce both material and labor costs for depreciation. Workers should carefully review their insurance policies and consider "replacement cost" coverage instead of "actual cash value" coverage when possible, as replacement cost policies typically provide more comprehensive protection.