This paper is intended as a supplement to the white paper published last year entitled, “The Approaching Storm: Business Income Losses, Catastrophe Claims, and the Post-COVID Economy,” where the concept of evaluating business...more
California has been a hotbed of litigation regarding COVID-19 business interruption claims. The vast majority of the trial courts have held in favor of insurers and against businesses. Now, the California Court of Appeal...more
In March 2020, Mudpie Inc.—a San Francisco children’s store—ceased operations when California Governor Gavin Newsom ordered all “non-essential” businesses to close due to the COVID-19 pandemic. Because of the shut-down,...more
An insurer has won the first jury trial on coverage for Covid-19 business interruption losses after a federal jury in the Western District of Missouri issued a verdict in favor of The Cincinnati Insurance Company in K.C....more
In Mudpie Inc. v. Travelers Casualty Insurance Company of America (No. 20-16858, filed October 1, 2021 ord. certified for publication October 4, 2021.), Mudpie Inc., a retailer of children’s products in San Francisco, filed a...more
In a recent decision, the Eleventh Circuit Court of Appeals ruled that an insured’s failure to allege “direct physical loss or damage” to property was fatal to its COVID-19-related business interruption claim. Although...more
In the second federal appellate ruling on Covid-19 business losses, the Eleventh Circuit has joined the Eighth Circuit in holding that they do not trigger coverage because they do not involve “physical loss” or “physical...more
Ransomware attacks were already on the rise prior to the COVID-19 pandemic, but the prevalence of such cyberattacks substantially increased during the pandemic due, in part, to additional security risks associated with the...more
Government mandated work-from-home orders have created a remote workforce, creating a host of complex state and local tax issues for both employers and their employees. Even as these orders expire, a common trend among...more
In response to the wave of litigation over COVID-19-related business income claims, an overwhelming majority of courts considering the relevant policy language — approximately 80% — have found no coverage as a matter of law...more
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
A trial level court in North Carolina recently found coverage under first-party property insurance policies for the insured restaurants’ COVID-19-related business income losses. In North State Deli, LLC et al. v. Cincinnati...more
As the COVID-19 pandemic continues, so does the deluge of litigation stemming from property insurers’ denials of COVID-19 business interruption claims. Much of the debate between carriers and policyholders concerns whether...more
On April 27, 2020, five Missouri retailers filed a putative class action suit against their insurance provider, The Cincinnati Insurance Company, for breach of contract relating to the insurer’s denial of coverage under the...more
NYC: A “Helluva” Town, for S corps- Of late, I’ve received a surprising number of inquiries regarding the taxation of S corporations doing business in New York City (“NYC”). As many of you know, NYC does not recognize...more
Policyholders whose businesses have been interrupted as a result of the COVID-19 pandemic have made claims under their property insurance policies for loss of business income, but they are almost universally denied. As the...more
In the wake of the Coronavirus (COVID-19) pandemic, countless businesses have reduced or closed operations—some permanently. Flights have been canceled, hotels and restaurants have closed, and employees have been told to stay...more