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The COVID-19 Insurance Wars Are Just Beginning

By Joan M. Cotkin & Dinesh Dharmadasa on September 23, 2020
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We have been carefully monitoring the litigation filed across the country, where businesses are seeking coverage for the business interruption losses arising from the government closure orders issued to address COVID-19. Some of the Closure Orders expressly refer to property damage, but it is important to actually plead facts that address the language in the relevant insurance policy and the insured losses sustained. In all the trial court decisions we have reviewed so far, the policies generally cover property coverage and related business interruption where there has been a “direct physical loss or damage” to the insured premises. Many also include separate civil authority coverage for business interruption losses sustained if the premises are ordered shut or partially shut down due to properties within a defined radius of the insured premises suffering from “covered causes of loss”—again, generally physical loss or damage. Some of the policies also include virus exclusions, but early motions to dismiss have focused on the question of whether COVID-19 has caused physical loss or damage to the premises insured.

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  • Posted in:
    Insurance
  • Blog:
    Policyholder Pulse
  • Organization:
    Pillsbury Winthrop Shaw Pittman LLP
  • Article: View Original Source

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