Cincinnati Insurance Appeals N.C. COVID BI Ruling

Appealing a decision by a Durham, North Carolina, court to grant a business interruption claim due to restaurant losses from pandemic restrictions.
November 18, 2020

An insurance company is appealing a decision by a Durham, North Carolina, court to grant a business interruption claim due to restaurant losses from pandemic restrictions. In its response to the court’s ruling, Cincinnati Insurance cited a letter from North Carolina Insurance Commissioner Mike Causey, which pointed out that business interruption insurance wasn't meant for a pandemic, and that covering those claims could be catastrophic for the industry, with payments in the hundreds of billions of dollars.

Causey wrote, “This type of loss could cripple the insurance industry causing many companies to fail, which would put the protection of homes, automobiles, and businesses at risk. We can’t legally force insurers to cover a risk which they didn’t intend to cover and which, in some instances, was specifically excluded in the policy.” The University of Pennsylvania Law School is tracking more than 1,200 COVID-related insurance lawsuits filed nationwide. This lawsuit is thought to be the only suit so far where a court has found COVID losses covered by a policy.

 


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