News & Analysis as of

Business Interruption Insurance Litigation

Bennett Jones LLP

The COVID-19 Virus Does Not Trigger Business Interruption Insurance Coverage

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In 2023, the Ontario Superior Court of Justice (Commercial List) released its highly anticipated decision in Workman Optometry Professional Corporation v Certas Home and Auto Insurance Company (Workman). The Court’s decision,...more

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

Rivkin Radler LLP

Insurance Update - June 2024

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Most pandemic-related businesses interruption insurance claims failed because policyholders could not show a direct physical loss. But some California courts issued conflicting decisions. The California Supreme Court has now...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - February 2024

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The insured, Consolidated Restaurant Operations, a company that owns and operates dozens of restaurants, obtained a commercial property policy from Westport Insurance Company. Subject to certain exclusions, the policy covered...more

Rivkin Radler LLP

COVID Biz Interruption Coverage Denied by NY Court of Appeals

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On February 15, 2024, the New York Court of Appeals unanimously upheld the Appellate Division, First Department decision affirming dismissal of restaurant operator Consolidated Restaurant Operations, Inc.’s (CRO) complaint...more

BCLP

English Court Decides COVID-19 is a “Catastrophe”

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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

Kennedys

New Jersey Supreme Court rules that COVID-19 business interruption claims may be dismissed at the pleadings stage

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In a unanimous opinion issued yesterday, the New Jersey Supreme Court joined the majority of other courts to hold that business interruption losses related to the COVID-19 pandemic are not covered under the standard language...more

Rivkin Radler LLP

NY Court of Appeals Hears Oral Argument on COVID-19 Business Interruption Case

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On January 10, the New York Court of Appeals heard oral arguments on a COVID-19 coverage appeal by a restaurant operator, Consolidated Restaurant Operations, Inc. (CRO), which posed issues of first impression. Courts...more

Woodruff Sawyer

The Commercial Insurance Landscape Continues to Evolve: A Q2 2023 Update

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The outlook for the commercial lines insurance market remains largely unchanged since the first quarter, with the supply of capital driving pricing behavior in all segments. For the directors and officers (D&O) market,...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

Ward and Smith, P.A.

Don't Set It and Forget It: Taking Inventory of Your Insurance Should Be a Recurring Business Practice

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It is true that death and taxes are certainties of this life, but so too is the fact that neither the risks that businesses face nor the businesses themselves are static.  Both are dynamic and evolve over time.  As the risks...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

Wiley Rein LLP

Fifth Circuit Affirms that Business Interruption Coverage Requires Direct Physical Loss; COVID-Related Losses Do Not Qualify

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In a win for Wiley’s client, the United States Court of Appeals for the Fifth Circuit, applying Louisiana law, affirmed the grant of an insurer’s motion to dismiss with prejudice. Hotel Mgmt. of New Orleans, LLC v. General...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

Woodruff Sawyer

Positive Trends in the Commercial Insurance Market: A Q4 2022 Update

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Commercial lines insurance buyers encountered mostly positive trends at the end of 2022. Most segments experienced rate stabilization and, in the case of public D&O, large rate decreases. The exception to this generally...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

Weber Gallagher Simpson Stapleton Fires &...

Failure to Satisfy Policy’s ‘Direct Physical Loss of or Physical Damage to Property’ Requirement Causes Restaurant's COVID-19...

In Protégé Rest. Partners LLC v. Sentinel Ins. Co., No. 21-16814 (9th Cir. 2022), the Ninth Circuit Court of Appeals, rejected another business interruption claim related to the pandemic. The Court affirmed the dismissal of a...more

Rivkin Radler LLP

Insurance Update - February 16, 2023

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Here are some of the leading insurance cases from the past month. The Sixth Circuit is the latest appellate court to address whether insurers must defend drug companies in local government opioid suits. Joining the Ohio...more

Maron Marvel

The Implications of Covid-19 on Insurance Coverage as it Relates to Business Interruption Claims and Force Majeure Clauses

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Perhaps since the very first executive order came out ordering businesses to close amid the early stages of the Covid-19 pandemic, attorneys have been holding their breath, waiting to see how Covid-19 would play out in terms...more

Lowndes

Are Economic Losses Caused by COVID Shutdowns Recoverable Under Commercial Property Insurance Policies

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As we have previously written, whether economic losses caused by COVID shutdowns can be recovered under commercial property insurance policies is a hotly-contested issue. (Past articles include, ‘Will Your Business...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

Rivkin Radler LLP

Insurance Update - May 18 2022

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You’ll find some notable decisions in our May Insurance Update. Appeals over pandemic-related business interruption losses have made their way up to state high courts. And so far, these courts have continued the trend...more

Gould + Ratner LLP

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

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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

Hinshaw & Culbertson - Insights for Insurers

COVID-19 Coverage Litigation: Insurers Maintain Unbeaten Record in All Appellate Court Decisions to Date

As we approach the end of the first quarter of 2022, things are still looking good for insurers in the COVID-19 coverage litigation battle.   The issuance of various governmental orders requiring businesses to temporarily...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

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