The Fifth Circuit added to the emerging body of case law addressing the recovery of business income losses in the cyber insurance coverage context to kick-start 2024 in Southwest Airlines Company v. Liberty Insurance. ...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
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
Many property insurance policies that provide coverage for business interruption losses also include “extra expense” coverage for reasonable and necessary extra costs to temporarily continue as nearly as possible normal...more
When Super Storm Sandy struck the Northeast on October 29, 2012, states, cities, municipalities and towns up and down the East Coast ordered hundreds of thousands of people to evacuate from their homes and businesses. ...more