Another court rules on COVID shutdowns & business interruption coverage
Insurers have argued that businesses seeking coverage for resulting income losses due to government shutdown orders were not covered under some commercial policies throughout the pandemic. That position was affirmed in a recent ruling by the U.S. Court of Appeals for the Sixth Circuit. Read more here.
A Potential Opening for COVID-Related Business Interruption Coverage for Louisiana Properties
A development in the case law might lead to an opening for business interruption coverage for COVID-related loss for Louisiana properties. Read more here.
Insurers prevail in ‘Cheers’ COVID-19 business interruption case
The company that operates the bar that inspired the TV show “Cheers” has lost its lawsuit seeking COVID-19 business interruption coverage. Read more here.
Policyholder loses federal appeal of BI ruling
In what may be the first federal appeals court ruling on the issue, the 8th U.S. Circuit Court of Appeals on Friday ruled against an oral surgeon’s practice as to whether a policyholder can recover for COVID-19 losses under its business interruption coverage. Read more here.
Judge Dismisses Hundreds of Washington State Business Interruption Claims
A federal judge in Seattle has dismissed lawsuits filed by hundreds of Washington state businesses seeking insurance coverage for revenues lost because of COVID-19 public health orders. Read more here.
Penn. Court Says Tavern Entitled to Business Income Coverage for COVID-19 Losses
An insurer could have to pay for a Pennsylvania tavern’s business interruption losses after it shut down due to the COVID-19 pandemic because of a two-letter word in its policy. Read more here.
In Rare Policyholder Win, Texas Judge Refuses to Dismiss Theater Chain’s COVID Lawsuit
A federal judge in Sherman, Texas on Wednesday ruled against an insurer that sought to dismiss a $500 million COVID-19 business-interruption lawsuit by the nation’s third-largest chain of movie theaters. Read more here.
Hartford Defeats Pa. Restaurants’ Pandemic Coverage Suit
The owners of Pennsylvania restaurants Stove and Tap and Al Pastor can’t force the Hartford to pay for losses from pandemic-related closure orders, a federal judge ruled, saying the mere threat of COVID-19 isn’t a physical loss or damage triggering coverage. Read more here.
Caesars sues insurance carriers for more than $2B lost to COVID-19
Caesars Entertainment Inc. has lost more than $2 billion over the course of the COVID-19 pandemic. Now it wants its insurance providers to pay up. Read more here.
Travelers wins virus BI case against hotel chain
A federal district court in Cleveland agreed to dismiss COVID-19 business interruption litigation filed by a hotel chain against a Travelers Cos. Inc. unit, holding that the mere physical presence of the virus on its property does not constitute physical loss under its coverage. Read more here.
Insurance recovery lawyer lifts lid on COVID BI claims
A nationally renowned insurance recovery group, led by noted policyholder advocate Robin Cohen, has launched its own law firm. Read more here.
Manufacturer Says $500M Insurance Policy Covers Virus Loss
Electronic cable maker Amphenol Corp. has sued Factory Mutual Insurance Co. seeking to compel the insurer to cover its more than $100 million pandemic-related claimed losses under its over $500 million all-risk policy. Read more here.
Travelers Beats LA Restaurant’s Virus Coverage Suit
A California federal judge granted Travelers Indemnity Co.’s bid to toss a Los Angeles restaurant’s suit seeking COVID-19-related loss coverage, ruling that the eatery failed to allege a “direct physical loss” and that coverage is barred by the policy’s virus exclusion. Read more here.
Restaurants’ COVID-19 Losses Are Covered, Ohio Judge Says
An Ohio federal judge ruled Tuesday that Zurich American Insurance Co. must cover losses suffered by more than a dozen steak and seafood restaurants due to COVID-19 shutdown orders, finding that the eateries’ policy can reasonably be interpreted to cover the loss of use of property. Read more here.
UK Supreme Court Rules Businesses Should Be Insured for COVID-19 Claims
Six of the world’s largest commercial insurers — Hiscox , RSA, QBE, Argenta, Arch and MS Amlin — argued many business interruption policies did not cover widespread disruption after government efforts to curb the virus from last March. Read more here.
Pa. Court Finds No ‘Physical Loss’ To Restaurants From Virus
A federal judge on Friday tossed a Pennsylvania restaurant’s proposed class action seeking coverage from National Fire & Marine Insurance Co. for losses due to the coronavirus, finding that establishments limited to carry-out service had not sustained the “direct, physical loss” necessary to trigger their insurance policies.
Read more here.
Dems’ Senate Win Sinks Insurers’ Virus Liability Shield Hopes
The insurance industry’s hopes for sweeping national legislation that would shield businesses from most coronavirus-related lawsuits were likely dashed last week as Senate control swung to the Democrats, who have resisted such a measure, warning that it would erode legal protections for workers and consumers. Read more here.
A New Year’s Nightmare: COVID-19 Litigation Piling Up
More than 1,000 lawsuits across industries have been filed against insurance firms over pandemic claims as Hollywood’s largest companies take a “wait and see” approach on who prevails in court. Read more here.
Treating Pandemics Like Wars or Terrorist Attacks May Be the Key to Helping Small Businesses
The pandemic proved that insurance offers little help to small businesses slammed by shutdowns. Now insurers and Uncle Sam are working to fix the problem with solutions based on the government’s response to the 9-11 terrorist attacks and World War II. Read more here.
COVID-19 Business Interruption Rulings, Most Favoring Insurers, Moving to Appeals
A wave of litigation over business-interruption losses caused by COVID-19 shutdown orders has started splashing into the appellate courts. Read more here.
Pandemic Driving Is Still Down, but Will Insurers Grant More Relief?
Many gave drivers a break in the spring. With accident claims remaining below normal, consumer advocates are calling for another one. Read more here.
Plano-based Cinemark sues insurer for $400 million loss
Plano-based movie theater chain Cinemark filed a lawsuit against its insurer for unrecovered losses, Bloomberg reported Tuesday. Read more here.
Bipartisan COVID-19 Plan Helps Businesses, Unemployed; Splits State Aid, Liability Shield
A bipartisan group of lawmakers released proposed Covid-19 relief legislation that may provide momentum for breaking a months-long impasse, by separating out coronavirus liability protections and state aid — the two most contentious and partisan items. Read more here.
Toss Advised For 2 Texas Eateries’ COVID-19 Coverage Suit
A Texas magistrate judge is recommending dismissal of a suit by two Texas restaurants seeking coverage for their losses after state orders suspended operations to stem the tide of COVID-19, saying they haven’t alleged the virus caused physical damage or loss to the properties necessary to trigger coverage. Read more here.
COVID-19 Is Not Covered By Pollution Insurance, Judge Rules
An Arizona federal judge freed Chubb unit Illinois Union Insurance Co. from having to cover a resort’s virus losses, finding Friday that the carrier’s “premises pollution liability” policy only covers environmental pollution but not the COVID-19 outbreak. Read more here.
Jemb Realty sues insurer, revealing challenges facing commercial property insureds
Amid the second wave of the coronavirus pandemic in the United States, the business interruption legal arena continues to heat up. Read more here.
Vegas Outdoor Mall Can Pursue COVID-19 Coverage Suit
A Clark County, Nevada, judge rejected an insurer’s bid to toss a COVID-19 business interruption coverage suit from the owner of Las Vegas’ Grand Bazaar open-air mall, holding that the owner sufficiently alleged property damage and the policy’s contamination and pollution exclusion does not apply to virus-related losses. Read more here.
Firm’s COVID-19 Insurance Claim Faces Skeptical Ga. Judge
A Georgia federal judge on Monday raised a series of concerns about the viability of an insurance suit filed by a law firm seeking to enforce property policy coverage for losses triggered by COVID-19 and a state-ordered shutdown. Read more here.
A federal court may have just turned Missouri into a hotbed for COVID-19 litigation
In September, Missouri federal judge Stephen R. Bough declared that Blue Springs Dental Care LLC could proceed with allegations that its insurance company had wrongfully denied business interruption claims resulting from the COVID-19 pandemic. Read more here.
Insurers tell UK court they can’t provide unlimited virus cover
Major insurance companies told the U.K. Supreme Court on Monday it was wrong to assume there could be unlimited cover during a pandemic in an appeal closely watched by thousands of British businesses devastated by the coronavirus crisis. Read more here.
NAIC 2020 Fall National Meeting to Include Special Session on Business Interruption
The NAIC Center for Insurance Policy and Research (CIPR) will hold a three-hour special session during the NAIC 2020 Fall National Meeting. The special session titled “Pandemic Business Interruption Federal Insurance Mechanism – Learning from the Past, Thinking About the Future” will take place Tuesday, December 8, 2020 from 10 a.m. – 1:00 p.m. Central Time. Read more here.
Insurer to Appeal Restaurants’ Win in North Carolina COVID Business Interruption Case
A judge in Durham County, North Carolina has handed down what may be the nation’s first dispositive ruling in favor of policyholders in a COVID-19 business-interruption lawsuit. Read more here.
FAIR releases a digital BI insurance explainer
The Future of American Insurance and Reinsurance (FAIR) has released a new interactive tool to help showcase the need for a federal solution to pandemic relief. The Business Interruption Insurance “explainer” utilizes digital storytelling techniques to help clarify information about this complex topic.
Court: Broker not liable for COVID-19 business interruption claim denial
After an insurance carrier denied a lawyer and her law firm’s claim for lost business income due to the COVID-19-related shutdown, she sued both her carrier and the insurance producer that procured the policy. Read more here.
Houston Rockets Lawsuit Against RI Insurer Is Playing Out in, Not on, a RI Court
Playing out in a Rhode Island courtroom is a legal battle between the NBA’s Houston Rockets’ parent company and the arena the team plays in, as they are suing Rhode Island-based FM Global — a case that could be worth hundreds of millions of dollars or potentially far more. Read more here.
Insurer seeks dismissal of COVID-19 suit filed by McDonald’s, franchisees
An insurer has filed a motion to dismiss a lawsuit filed by McDonald’s Corp. and two of its franchisees over the insurer’s refusal to defend them in COVID-19 litigation filed by the fast-food chain’s employees. Read more here.
LA Restaurant Loses Legal Battle in Ongoing Coronavirus Insurance Fight
A Los Angeles restaurant faced a legal setback in a lawsuit against its insurance company this week, setting precedent for what could be a tough round of claim denials for restaurants negatively affected by the ongoing coronavirus pandemic. Read more here.
Hollywood’s Insurer Braces for Claims Due to COVID-Related Movie, TV Shutdowns
Allianz SE, Europe’s largest insurer, is bracing for a flood of claims after movie and television studios were forced to curtail production during lockdown. Read more here.
Hartford, Travelers Won’t Face Combined Virus-Loss Claims
Hartford Financial Services Group, The Travelers Cos. Inc. and other insurers won’t have to face a consolidation of hundreds of billions of dollars’ worth of business-interruption claims tied to the Covid-19 outbreak, a group of judges concluded. Read more here.
German Court Rules Insurer Must Pay Restaurant’s Lockdown Claim
A German court has ruled that a Munich restaurant’s insurer must pay out a claim for losses caused by the state-imposed COVID-19 lockdown earlier this year, the first prominent such case in Germany in which the court found in favor of the plaintiff. Read more here.
Customers sue Allstate and other large auto insurers for bigger rebates
The lawsuits allege that large car insurance companies didn’t provide enough financial relief as Illinois motorists stayed off the road during the height of the pandemic. Read more here.
Usage-based insurance gaining steam among consumers
63% of U.S. consumers are open to changing their current auto insurance policy for one that has a telematics-based premium. Read more here.
Miles driven set to drop with increased work-from-home
Working from home and online shopping have become the new normal and that will reduce driving in the U.S. by up to 270 billion miles a year, according to new study. Read more here.
Progressive reveals profits in face of pandemic refunds
Despite reporting a significant drop in claims and providing auto insurance customers with premium refunds, Progressive generated a substantial profit during the pandemic – a detail that consumer advocates believe is unfair to customers. Read more here.