Courts Siding With Insurers Over BI Claims
The Insurance Information Institute (Triple-I) reports that insurers have won more than a dozen cases since May, ruling that business interruption policies only take effect if a property sustains physical damage. The business owners had argued that the coverage should have started when local or state governments issued stay-at-home orders that hampered their ability to operate.
However, bills to require insurers to cover coronavirus-related business losses have failed, and recent court decisions in Georgia, Florida, and other states seem to suggest that these lawsuits are a lost cause. Triple-I CEO Sean Kevelighan said, “The federal government remains the only entity with the financial resources to help businesses recover from a systemic event of this magnitude. With the support of the public sector and the innovation of groups like insurers in the private sector, we can come together to work toward recovering from this catastrophe and build a more resilient future.”