Confirming the growing split of decisions among federal courts addressing COVID-19 insurance issues, two district courts in the Fifth Circuit differed in their interpretation of virus exclusions, with one denying coverage and the other permitting the policyholder’s claim to proceed.
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DEVELOPMENTS AND TRENDS IN INSURANCE COVERAGE FOR COMMERCIAL POLICYHOLDERS
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Big Win for Restaurant Policyholders in COVID-19 Litigation in North Carolina
A North Carolina court has required Cincinnati Insurance Company to provide business interruption and extra expense coverage to 16 North Carolina restaurants that lost the use of and access to their properties due to COVID-19 civil authority orders (see North…
Court Denies Efforts to Consolidate COVID-19 Suits
The Panel on Multidistrict Litigation has rejected efforts to centralize pretrial proceedings in actions in Pennsylvania and Illinois seeking insurance coverage for business interruption losses resulting from COVID-19. The request for MDL-status was hotly contested, with insureds in more than…
Significant Result for Policyholders in COVID-19 Coverage Litigation
Judge Stephen Bough and the federal court in the Western District of Missouri entered an important order yesterday in a case brought by Studio 417, a hair salon, and several restaurants against Cincinnati Insurance Company. The order denied the insurer’s motion…
Hurricane Season: Why All Property Owners Should Consider Flood Insurance
June 1 marked the start of hurricane season, and according to the National Oceanic and Atmospheric Administration (NOAA), the Atlantic hurricane season will be a busy one. NOAA predicts a 60% chance of an above-normal season, a 30% chance of…
Court Declines Jurisdiction Over COVID-19 Insurance Dispute
The recent procedural ruling by a Pennsylvania federal court highlights another area of uncertainty in the growing wave of insurance litigation related to COVID-19: will these cases proceed in state or federal courts? The U.S. District Court for the Western…
Is Civil Authority Insurance Coverage the Solution for Businesses Sustaining Losses from COVID-19?
Many of the early insurance-related COVID-19 lawsuits seek insurance coverage under the civil authority coverage grant in commercial property policies. Restaurants filed the first cases (Cajun Conti LLC, et al. v. Certain Underwriters at Lloyd’s, London, et al. and French…
Louisiana Seeks to Protect Businesses, Big or Small, from COVID-19
Louisiana, like many other states, has proposed two insurance coverage bills in response to COVID-19’s devastating impact on businesses. While Louisiana’s House bill is limited to small businesses, the Senate bill is not. Both require insurers to cover COVID-19 related…
Homesick for Home Games: Plaintiffs File Class-Action Suit Against MLB Demanding Refunds for Tickets
COVID-19 has changed the daily lives for all Americans, and this includes a spring with no baseball. Fans across the nation had tickets in hand for the 15 games set for Opening Day on March 26, 2020. However, on March…
Business Interruption Coverage for COVID-19 Losses: You Can Satisfy the “Physical Loss or Damage” Requirement in Your Commercial Property Policy
Although your insurance company undoubtedly will try to convince you that you have no coverage for your business interruption losses from COVID-19, do not be so quick to accept the insurer’s position. In its simplest terms, the business interruption coverage…