business interruption News

Insurers Face Possible British Action Over Calculation of Pandemic Payouts

LONDON — Insurers that do not treat customers fairly when calculating payouts for business interruption due to the coronavirus crisis will face action by Britain’s markets watchdog. The Financial Conduct Authority (FCA) has taken eight insurers to court over business …

S.African Insurers Old Mutual, Guardrisk Offer to Settle With Virus-Hit Firms

JOHANNESBURG — South African insurers Old Mutual and Guardrisk are to offer settlements to small business clients fighting rejected claims related to the impact of the country’s coronavirus lockdown. In line with the industry globally, South Africa’s insurers have declined …

Federal Biz Interruption Bill Backed by Plaintiffs Group Introduced

Last week, a U.S. lawmaker introduced a bill that would allow insurers to voluntarily pay certain COVID-related business interruption claims and get reimbursed by the federal government, but insurance groups have rejected the idea. Although the text of H.R. 7412, …

Michigan Judge Rejects Restaurants’ COVID-19 Business Interruption Claim

A trial court judge in Lansing, Michigan handed a victory to insurers in what may be the nation’s first final ruling on the question of whether a property insurer is liable for financial damages caused by a coronavirus closure order. …

Insured Losses from Riots Reach ‘Catastrophe’ Levels, May Rival Record

Rioting that erupted in cities across the United States after the Memorial Day death of George Floyd in Minneapolis may rival the 1992 Los Angeles riots to become the most costly civil disorder in United States history. The civil disturbance …

Viewpoint: Be Like Mike and Look to Fundamentals to Recover COVID-19 Losses

Michael Jordan, the National Basketball Association icon, once said, “get the fundamentals down and the level of everything you do will rise.” His insight here also holds value for insurance lawyers who are facing their own game seven. Many of …

Federal PRIA Bill Officially Introduced for Biz Interruption, Event Cancellation

During a press conference on Tuesday, U.S. Rep. Carolyn Maloney, D-New York, officially announced the introduction of the much-anticipated Pandemic Risk Insurance Act of 2020, a federal backstop for pandemic-related business interruption insurance modeled after the Terrorism Risk Insurance Act. …

U.S. Insurers Propose Taxpayer-Funded Business-Loss Coverage For Future Pandemics

With U.S. insurance companies facing criticism over their response to the coronavirus outbreak, three industry groups on Thursday proposed putting the Federal Emergency Management Agency (FEMA) in charge of a taxpayer-backed program to protect businesses from revenue losses during future …

Number of Federal COVID-19 Business Interruption Lawsuits at 101 and Rising

A federal court has received notice that 101 lawsuits have been filed as of Wednesday seeking coverage from insurers for business interruption losses caused by COVID-19. Plaintiffs attorneys say they expect the number to rise into the thousands. “Ultimately, I …

Bid to Force Interruption Insurance to Cover Virus Shelved

BATON ROUGE, La. — Louisiana lawmakers won’t try to force business interruption insurance policies to cover the widespread closures caused by the COVID-19 pandemic. Sen. Rick Ward, a Port Allen Republican, scrapped the proposal Wednesday amid concerns it could crater …