Archives: COVID-19

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California Supreme Court to offer guidance for COVID-19 coverage cases

By Ashley Jordan and Elizabeth Bowman on Posted in Business interruption, COVID-19, Insurance Coverage, Insurance General
Courts continue grappling with the application of California insurance law to COVID-19 business interruption claims. After three years of insurance claims and litigation, the California Supreme Court has agreed to provide guidance as to whether the actual or potential presence of SARS-CoV-2 on insured property can qualify as physical loss of or damage to property … Continue Reading

A tale of two opinions: The meaning of “physical loss” in the context of commercial property policies for Covid-19-related losses in Pennsylvania

By Andrew Kintner and Max Louik on Posted in COVID-19, Insurance Coverage, Insurance General, Property Damage & Business Interruption
With the onset of the Covid-19 pandemic in 2020, businesses across the country were forced to shut their doors and turn to their commercial property insurance companies to seek coverage. With their properties having been rendered useless for their intended (and insured) business purposes, these insureds reasonably expected their “all risk” policies would provide the promised … Continue Reading

Physical loss and reasonable expectations of policyholders: The Third Circuit whiffs

By Douglas C. Rawles on Posted in COVID-19, Insurance Coverage, Insurance General, Property Damage & Business Interruption
On January 6, 2023, the Third Circuit affirmed lower court rulings in 14 consolidated appeals from orders dismissing claims for property damage and business interruption losses resulting from the coronavirus and/or COVID-19. Policyholder lawyers can (and will) find fault with many parts of Wilson v. USI Ins. Service LLC, Case No. 20-3124, in which the Third … Continue Reading

Policyholders seeking coverage for Covid-19-related losses may have reason to be optimistic

By Nicholas Insua on Posted in Business interruption, COVID-19, Insurance Coverage, Insurance General
I recently wrote about lessons that could be learned from the ongoing insurance coverage jurisprudence related to the coronavirus / Covid-19 pandemic.  That article discussed broad trends that had developed and cohered across this vast litigation landscape, through multiple decisions in many courts over the course of several months or more.  Although descriptive, most of … Continue Reading

COVID-19 business income claims – Will state appellate courts reject federal court predictions as to state law?

By Rich Lewis on Posted in Business interruption, COVID-19, Insurance Coverage, Insurance General, Property Damage & Business Interruption
In the past few months, in cases considering whether SARS-CoV-2/COVID-19 can cause direct physical loss or damage to property so as to trigger business income coverage, policyholders have secured three wins in state appellate courts: Ungarean in the Superior Court of Pennsylvania, Huntington Ingalls in the Vermont Supreme Court, and Cajun Conti in the Louisiana … Continue Reading

Direct physical loss in COVID Coverage cases: Are policyholders seeing a litigation shift in favor of COVID-19 coverage?

By Connor O'Carroll, Elizabeth Bowman and David E. Weiss on Posted in Business interruption, COVID-19, Insurance Coverage, Insurance General
The ongoing COVID-19 pandemic led to unprecedented closures and losses for businesses throughout the United States. Naturally, policyholders have sought recovery for pandemic-related losses under their “all risk” commercial property policies. According to the University of Pennsylvania Carey School of Law Covid Coverage Litigation Tracker, there have been approximately 2,300 of these COVID-19 coverage cases … Continue Reading

Amy’s Kitchen: A step in the right direction

By Adrienne N. Kitchen and Douglas C. Rawles on Posted in COVID-19, Insurance Coverage, Insurance General, Property Damage & Business Interruption
On October 4, the California First Appellate District in Amy’s Kitchen, Inc. v. Fireman’s Fund Insurance Company, 2022 Cal. App. LEXIS 836, reversed a trial court’s order granting the insurer’s demurrer in a COVID-19 property damage claim, and remanded to allow the policyholder to amend its allegations of loss under a communicable disease coverage extension.  … Continue Reading

A policyholder win: Court finds coverage for COVID-19 related losses

By Nat Ochoa and David E. Weiss on Posted in Business interruption, COVID-19, Insurance Coverage, Insurance General
Recently, a California federal court issued a favorable decision for policyholders seeking coverage for losses arising from COVID-19 who paid significant premiums to purchase substantial coverage limits including “coverage for business interruption losses from a virus.”  Sunstone Hotel Investors, Inc. v. Endurance Am. Spec. Ins. Co., Case No. SACV 20-02185 (C.D. Cal., June 15, 2022). … Continue Reading

Looking beyond “Physical Damage to Property”: Is Marina Pacific Hotel a winning framework for policyholders?

By Claire Whitehead and John Vishneski on Posted in Business interruption, COVID-19, Insurance Coverage, Insurance General, Property Damage & Business Interruption
It’s no secret that businesses of all shapes and sizes have suffered tremendous losses during the COVID-19 pandemic. From closures to the “Great Resignation” to ever-changing consumer demands, businesses have dealt with one problem after another. One of those problems is the denial of insurance coverage under  “all risk” commercial property policies. For the last … Continue Reading

“Occurrences” in COVID-19 business interruption litigation

By Matthew B. Weaver on Posted in Business interruption, COVID-19, Insurance Coverage, Insurance General
Nearly two years into the COVID-19 pandemic, the battles over threshold business interruption coverage issues like the presence of physical loss or damage, causation, and the applicability of policy exclusions continue to rage.  Results have been mixed, with insurers notching wins in federal courts, and policyholders faring better in state courts and in certain jurisdictions. … Continue Reading
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