5 Court Cases Shaping Business Interruption Claims After COVID-19

 Tuesday, September 8, 2020

 Risk & Insurance

First came the virus. Then came the lawsuits. With businesses stopped in their tracks, many have turned to their insurance companies for business interruption coverage — only to get denied.

Typically part of property coverage, business interruption is applicable only when there is physical damage to property. Oftentimes, there are virus exclusions in the policy language.

Still, businesses across the world are suing their insurance companies (and brokers, in some cases) over the coverage denials. Now that cases are making their way through the court systems, the ensuing litigation will be nothing short of fascinating.

Will attorneys successfully argue that the mere presence of a virus constitutes physical damage? If one business is successful in getting a claim denial reversed, will it set a legal precedent other attorneys can cite?

Answers to those questions should begin to take shape in the coming months.