News & Analysis as of

Business Interruption Denial of Insurance Coverage

Cadwalader, Wickersham & Taft LLP

COVID Decision of Interest

In a recent New York Court of Appeals opinion, the court found that business losses due to the COVID-19 pandemic were not covered under an “all-risk” commercial property insurance policy. In Consolidated Rest. Operations,...more

BCLP

English Court Decides COVID-19 is a “Catastrophe”

BCLP on

The English Court has, for the first time, considered the meaning of a “catastrophe”, as well as how Hours Clauses work in the context of non-damage business interruption losses claimed under two Property Catastrophe Excess...more

Morrison & Foerster LLP - Left Coast Appeals

This Week At The Ninth: Insurance Coverage for COVID and In-Person Informed Consent for Abortion

This week, the Court considers insurance coverage for business losses sustained as a result of COVID-19 and the constitutionality of Guam’s in-person informed consent requirement for abortion. THE OREGON CLINIC, PC V....more

Ervin Cohen & Jessup LLP

Ninth Circuit Deals Another Blow to Restaurants in COVID-19 Insurance Coverage Case

On June 26, 2023, a panel of judges for the United States Court of Appeals for the Ninth Circuit affirmed an insurance company’s win over a restaurant group seeking insurance coverage for pandemic-related claims in Team 44...more

Lathrop GPM

Excuse the Interruption

Lathrop GPM on

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

Email Scam Losses May Find Recourse Via Cyber Or Business Interruption Coverage

Losses arising from email scams are usually covered, if at all, under a company’s crime policy. But a recent decision from The District Court in Minnesota suggests that recourse may also be found under an insured’s cyber or...more

Butler Weihmuller Katz Craig LLP

Seventh Circuit Affirms Judgment on the Pleadings for Insurer in Covid-19 Business Interruption Claim by Shopping Mall Food Court...

A victory was obtained in the case of Melcorp, Inc. v. West American Ins. Co., No. 21-2448 (7th Cir. June 8, 2022). The Seventh Circuit affirmed yet another trial court decision in favor of an insurer on a Covid-19 business...more

Wiley Rein LLP

Insured Cannot Amend Complaint to Add Bad Faith Claim Where Coverage Issue is “Debatable”

Wiley Rein LLP on

Applying Minnesota law, the United States District Court for the District of Minnesota has denied an insured’s motion to amend its coverage litigation complaint to add a claim for bad faith, holding that coverage under the...more

Gould + Ratner LLP

Illinois Appellate Court Denies Business Interruption Insurance Claim Related to COVID-19

Gould + Ratner LLP on

In the wake of the COVID-19 pandemic, many businesses across the country filed claims for business interruption coverage with their insurance carriers, most, if not all of which, were denied. Indeed, by the end of June 2021,...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

Steptoe & Johnson PLLC

Fourth Circuit Upholds Dismissal of Insurance Claim for Pandemic Related Business Losses

Steptoe & Johnson PLLC on

In a published decision filed March 7, 2022, the U.S. Court of Appeals for the Fourth Circuit in Uncork and Create LLC v. The Cincinnati Insurance Company, affirmed the U.S. District Court for the Southern District of West...more

Butler Snow LLP

The Fifth Circuit Court of Appeals Just Slammed the Door on Texas Businesses Seeking Insurance Coverage for Lost Revenue Due to...

Butler Snow LLP on

In a pair of opinions issued last month, the Fifth Circuit Court of Appeals held that Texas businesses’ COVID-19 related income loss was not covered by standard business income and extra expense (“BI/EE”) endorsement in...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

Cozen O'Connor

COVID-19 Business Interruption Claims: First California Court of Appeal Decision Holds That Closure Orders Are Not “Direct...

Cozen O'Connor on

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

Cozen O'Connor

Ninth Circuit Holds COVID-19 Business Interruption Losses Require Direct Physical Damage To The Property

Cozen O'Connor on

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

Cozen O'Connor

Insurer Wins First Jury Trial on Coverage for COVID-19 Business Interruption Losses

Cozen O'Connor on

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

Hinshaw & Culbertson - Insights for Insurers

Tic-Tac-Toe, Sixth Circuit Finds No Coverage For COVID-19 Claims Based Upon The Absence of Direct Physical Loss

The U.S. Court of Appeals for the Sixth Circuit recently affirmed the dismissal of a policyholder’s COVID-19 insurance coverage action in Santo’s Italian Café LLC v. Acuity Insurance Co., No. 21-3068 (6th Cir. Sept. 22,...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

Cozen O'Connor

Eleventh Circuit Becomes Second Federal Appellate Court To Hold No Coverage For COVID-19 Business Losses

Cozen O'Connor on

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

K&L Gates LLP

HUB Talks: Insurance Coverage for COVID-19 Losses in the United Kingdom

K&L Gates LLP on

In this episode, Sarah Turpin, Insurance Recovery and Counseling partner in our London office, discusses insurance coverage for COVID-19-related losses in the United Kingdom, including the UK Supreme Court’s important...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

Farrell Fritz, P.C.

Free Rein Venue Choices? Not So Fast Says the Commercial Division

Farrell Fritz, P.C. on

The principles of jurisdiction and venue are paramount when determining not only where a proceeding will be conducted, but also which particular laws will govern the proceeding. ...more

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