As has been widely reported, insurance companies have been inundated with claims arising from the novel coronavirus and are locked into contentious coverage battles regarding the scope of coverage afforded for such claims under various policy forms. Courts have begun issuing decisions both for and against policyholders attempting recovery for COVID-19-related losses, and the legal battles resolving those questions will likely take months or even years to play out.

Continue Reading Insurers Raise D&O Premiums, Restrict Coverage, and Reportedly Leverage Pandemic to Boost Long-Term Profitability

As expanded upon here in our firm’s Three Key Things in Health Care update, health care providers should not let a recent opinion piece in the Wall Street Journal dissuade them from aggressively pursuing recovery for business interruption losses related to COVID. In short, the authors of that editorial ignore the language and structure of

On August 28, Judge Stephen V. Wilson of the Central District of California, entered the latest ruling in the ongoing saga of the COVID-19 business interruption coverage dispute between celebrity plaintiff’s attorney Mark Geragos and Insurer Travelers.

Continue Reading Despite Misapplying California Law, Federal Court Acknowledges Virus May Cause Physical Alteration to Property

On August 13, 2020, the United States District Court for the Western District of Texas granted State Farm Lloyds’ (“State Farm”) motion to dismiss a claim for loss of income resulting from multiple executive orders requiring closure of non-essential businesses in Bexar County, Texas following the COVID-19 pandemic.[1] In doing so, the court admitted that courts across many jurisdictions have found “physical loss” in the absence of tangible destruction to a covered property. However, the court glossed over such analogous cases involving disease-causing agents such as E. coli, ammonia, and asbestos, where those courts found the existence of physical loss.

Continue Reading Texas Federal Court’s Denial of Barber Shops’ COVID-19 Claims Lacks Body and Style

Hunton special counsel Scott DeVries was quoted August 14 in a Bloomberg Law article titled “More Virus Insurance Suits Could Follow as Consolidation Fails.” The article discussed a federal panel’s refusal to centralize hundreds of businesses’ lawsuits against their insurers over pandemic-related coverage. Elaborating on the ruling, DeVries observed that “Insurance contracts are a matter

Over the past couple of months, we have written on decisions by various European insurers to pay policyholders for their COVID-19 related losses. That positive trend is now moving across continents.

Continue Reading South African Insurers Agree to Pay for COVID-19 Losses

On August 18, 2020, the United States Court of Appeals for the Eleventh Circuit affirmed a District Court’s 2018 ruling that Sparta Insurance Company need not cover a south Florida restaurant’s lost income and extra expenses resulting from nearby road construction. But, in doing so, the appeals court appears to deviate from even its own understanding of “direct physical loss” under controlling Florida law.

Continue Reading Dust Obscures Eleventh Circuit’s Ruling on “Direct Physical Loss”

As the effects of coronavirus continue, organizations and companies now are considering whether events in late 2020 and early 2021 can take place or need to be converted to virtual events.  What insurance effects will those changes and cancellations have? Consideration of these important decisions requires a review of both event-cancellation insurance and a consideration of force majeure and other such issues.

Continue Reading Event-Cancellation Insurance Issues During a Pandemic

On August 6, 2020, in Rose’s 1 LLC, et al. v. Erie Insurance Exchange, Civ. Case No. 2020 CA 002424 B, a District of Columbia trial court found in favor of an insurer on cross motions for summary judgment on the issue of whether COVID-19 closure orders constitute a “direct physical loss” under a commercial property policy.

Continue Reading D.C. Decision Finding No “Direct Physical Loss” for COVID-19 Closures Is Not Without Severe Limitations