Insurance Lawsuits On the Rise
An analysis of Bloomberg Law dockets shows that insurance contract complaints were up by 20 percent over June 2019, and July 2020 saw 26 percent more insurance contract complaints filed than July 2019. August’s complaints are up about 14 percent over last year. Year to date, 881 more insurance complaints have been filed in 2020 than in the same period of 2019 — about 11 percent more than last year’s total. During 2019, the number of suits filed in federal court under the insurance contract “nature of suit” was fairly stable each month.
It is unclear if the uptick in cases will continue beyond this summer. It is still possible that the bulk of insurance lawsuits about COVID-19 coverage are yet to be filed, because it can take months to complete the mandated procedures involved in disputing a claim. On the other hand, it could be that this summer saw the extent of any spike in cases, and suits will trend back down toward 2019’s levels as policyholders no longer have the money to fight lengthy court battles.