Many commercial policyholders will likely make claims for supply chain-related losses resulting from the coronavirus outbreak in China, but they may have some high hurdles to clear before they receive payments, expert say.LitigationManagement & Sales
Business interruption and contingent business interruption policies typically require that lost production and profits be caused by physical damage, they say.
Some wordings allow coverage for virus-related losses, though, and other policy wordings may be tested in court, given the amount of money at stake, they say.
After originating in China, as of Tuesday the disease had spread to an additional 25 countries and territories, with more than 72,000 ill from the virus and a global death toll of 1,873.
The virus, which remains unchecked, has led to plant closures, cancelled flights and quarantined cruise ship passengers, among other things, while a vaccine remains elusive.