News & Analysis as of

Denial of Insurance Coverage Business Interruption Policy Exclusions

Cozen O'Connor

Claims Notes: October 2024

Cozen O'Connor on

A dental practice submitted a business interruption claim to its property insurers due to the COVID-19 shutdown orders. The insurers denied coverage, citing a lack of physical damage to the premises. Breaking with national...more

J.S. Held

Strategies to Avoid Cyber Insurance Claim Challenges: Part II

J.S. Held on

In Part I of this series, we posed a series of questions to consider when purchasing cyber insurance. Our approach was deliberate: the right questions help get you the right insurance to address cyber risks facing your...more

Lathrop GPM

Excuse the Interruption

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All eyes are on the New Jersey Supreme Court as we await oral arguments on the latest business interruption coverage dispute. In the lawsuit, an Atlantic City casino, Ocean Walk, seeks reimbursement for costs incurred during...more

Sheppard Mullin Richter & Hampton LLP

The Commercial Division Rejects Yet Another Insured’s Claim for Coverage for Covid-Related Revenues Losses

Does the business harm caused by COVID-19 qualify as “direct physical loss” for insurance purposes? In Spirit Airlines, Inc. v. American Home Assurance Company, Index No. 655755/2021, Commercial Division Justice Robert R....more

Ervin Cohen & Jessup LLP

Ninth Circuit Rejects Insurance Coverage for COVID Losses

On March 16, 2022, the Ninth Circuit joined other appellate courts in finding that restaurants were not entitled to insurance coverage for losses due to the COVID-19 pandemic shutdowns. A panel of judges issued an unpublished...more

Lowenstein Sandler LLP

Out With a Bang: Current State of Play on Coverage for COVID-Related Losses

Lowenstein Sandler LLP on

For our last episode of 2021, Lynda, joined by Insurance Recovery Group attorneys Eric Jesse and Joseph Saka, close out the year with a BANG! …a year in review of the COVID-related coverage rollercoaster policyholders have...more

Morgan Lewis

Arbitrator Denies Cover for Policyholders Regarding Business Interruption Losses

Morgan Lewis on

A group of hospitality policyholders failed in their attempt to obtain cover under a business interruption policy as it was determined, in an ad hoc arbitration, that the UK central government did not constitute “a competent...more

Hinshaw & Culbertson - Insights for Insurers

Insurers Prevail in First Two U.S. Appellate Court Decisions

The pace of new COVID-19 coverage actions has slowed down in recent months, but new cases continue to be filed. As of August 31, 2021, according to the Penn Law COVID Coverage Litigation Tracker, more than 1,980...more

Farrell Fritz, P.C.

Northwell Loses Bid For COVID-19 Insurance Coverage

Farrell Fritz, P.C. on

SDNY Judge Jed Rakoff rejected Northwell Health’s bid for insurance coverage for its increased costs and business losses related to the COVID-19 pandemic in a recent decision.  ...more

Flaster Greenberg PC

NJ Policyholders Could Still See Recovery For COVID Losses

Flaster Greenberg PC on

To date, New Jersey courts, both state and federal, handling COVID-19 business interruption insurance cases have ruled on at least 32 dispositive motions. Thirty of those motions were resolved favorably to insurers. Yet,...more

Cozen O'Connor

Southern District of New York Holds Contamination Exclusion is Ambiguous as Applied to Covid-19 Business Losses

Cozen O'Connor on

The Southern District of New York recently held that a contamination exclusion was ambiguous in the context of Covid-19-related business interruption losses. Accordingly, the court held that the issue was inappropriate to...more

Rumberger | Kirk

Eleventh Circuit Weighs Business Interruption Coverage for COVID Related Loss

Rumberger | Kirk on

Trial courts have started to rule and appellate courts are now being asked to decide whether government closure orders enacted due to the COVID-19 pandemic cause restaurants “direct physical loss or damage to property” within...more

Zelle  LLP

COVID-19 Insurance Issues To Watch In Civil Law Countries

Zelle LLP on

A recent judgment from a court of appeal in Spain shows that the outcome of coverage disputes over COVID-19 business interruption losses in civil law jurisdictions may be different from what would be expected in a common law...more

Zelle  LLP

Commercial Property Insurance Coverage for Texas Winter Freeze Losses

Zelle LLP on

For an incredible 10-day period in mid-February, Texas was battered by a brutal winter storm bringing snow, ice, and record-low temperatures. Millions of Texans were without power and water for days. These conditions forced...more

Farrell Fritz, P.C.

COVID coverage for business losses? “No,” says the first New York court to address the issue of whether a business interruption...

Farrell Fritz, P.C. on

COVID-19 continues to generate litigation in a variety of contexts in the Commercial Division.  Only two weeks ago did our colleague Madeline Greenblatt author a blog about COVID-19 not excusing commercial rental obligations....more

Bilzin Sumberg

Policyholders Gain Momentum in COVID-19 Insurance Coverage Cases

Bilzin Sumberg on

As we anticipated back in May, there has been a significant increase in litigation relating to business interruption insurance coverage for losses attributable to COVID-19 restrictions. Restaurant policyholders, in...more

Seyfarth Shaw LLP

New York Federal Court Weighs in on Insurance Coverage During the Pandemic

Seyfarth Shaw LLP on

The question of whether businesses may be able to recover for COVID-19-related losses under their insurance policies continues to be an important topic for many as the pandemic continues.  A federal court in New York recently...more

Gould + Ratner LLP

Policyholders See New Developments in COVID-19 Case Law

Gould + Ratner LLP on

Insurers across the nation continue to file motions to dismiss COVID-19 cases brought by policyholders on three primary grounds: 1. there is no” physical loss or damage” to the covered property, 2. there is no “prohibition...more

Hogan Lovells

TKC v Allianz Insurance Plc: temporary loss of use of premises does not trigger standard BI cover

Hogan Lovells on

The Commercial Court has ruled that temporary loss of use of premises as a result of COVID-19 lockdown measures will not trigger cover under a standard business interruption policy that requires property damage to trigger...more

Epstein Becker & Green

Missouri Court Rules in Favor of Business Owners in COVID-19 Coverage Lawsuit

Following up on our recent post about a business interruption insurance decision by a Washington D.C. court, a federal judge in Missouri ruled last month, in Studio 417, Inc., et al. v. The Cincinnati Ins. Comp., No....more

Melito & Adolfsen

The Insurance Industry Anticipated a Pandemic from a virus like Covid-19 more than a decade ago.

Melito & Adolfsen on

For businesses that were shut down by COVID-19 a common question is whether there is coverage for business interruption. In New York, the answer is no. This should be the answer nationwide. Coverage for business interruption...more

Katten Muchin Rosenman LLP

US District Court Rules That COVID-19 Could Constitute Physical Loss Supporting a Claim for Business Income Loss in Denying a...

Key Points - - Several courts have concluded that government-mandated shutdown orders during COVID-19 do not constitute "direct physical loss," a pre-requisite for insurance coverage that is outlined in insurance policies....more

Ervin Cohen & Jessup LLP

Ruling May Shed Light On Physical Losses and COVID-19

In the context of the numerous lawsuits have recently filed by policyholders seeking compensation for lost business income occasioned by the pending pandemic, a key issue will be whether those policyholders have suffered...more

Cozen O'Connor

Eleventh Circuit Confirms Cleaning is not Direct Physical Loss

Cozen O'Connor on

The Eleventh Circuit has provided some clarity to Florida businesses and their insurers dealing with COVID-19 claims. In Mama Jo’s Inc., d.b.a. Berries v. Sparta Ins. Co., No. 18-12887 (11th Cir. March 18, 2020), the Court...more

Rumberger | Kirk

Eleventh Circuit Ruling Interpreting “Direct Physical Loss” is a Win for Insurers and Could Impact Coronavirus Business...

Rumberger | Kirk on

As coronavirus business interruption claims continue to be filed and make their way through courts across the country, an August 18, 2020 opinion from the Eleventh Circuit Court of Appeals could influence how Florida’s...more

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