Tag Archives: Coronavirus

The Novel Coronavirus and Reinsurance

I have updated my musings on insurance losses arising from the novel coronavirus and the issues that may arise should those losses become cessions to reinsurance contracts in my latest IRMI.com quarterly Reinsurance Commentary.  I hope you find it useful and would welcome comments and feedback.  You can access the Reinsurance Commentary by clicking the … Continue Reading

COVID-19 and the Exclusion for Virus and Bacteria

Insurance policies contain coverage grants and exclusions.  Generally, the burden is on the insured in the first instance to prove that the insured’s loss comes within the insurance policy’s coverage grants.  If the insured proves that the policy covers the insured’s loss, then the burden shifts to the insurer to prove that a policy exclusion … Continue Reading

Is a COVID-19 Stay-Home Order Alone Enough to Trigger Business Interruption Coverage?

Back in March, when the novel coronavirus was spreading and local and state governments were issuing stay-home orders, we published a blog post on Civil Authority Orders and COVID-19 Coverage.  Since that time, there have been over 125 lawsuits filed by insured businesses, many of them arguing that the economic damages caused by these COVID-19 … Continue Reading

COVID-19 Losses from a Reinsurer’s Perspective

This blog post provides some thoughts on addressing COVID-19 losses from the reinsurer’s perspective.  A reinsurer does not issue the underlying policies and does not handle the underlying claims.  A reinsurer relies upon its reinsured to adjust claims within the terms and conditions of the reinsured policies and the reinsurance contract.  Just like the ceding … Continue Reading

COVID-19 Losses From a Reinsured’s Perspective

This blog post provides some thoughts on addressing COVID-19 losses from the perspective of the reinsurance buyer: the reinsured or cedent.  A cedent has two main considerations when faced with a loss:  (1) is the loss a covered loss under the cedent’s insurance policies? and, (2) if the loss is a covered loss, is it … Continue Reading

COVID-19 Insurance-Related Blogs and Articles for March and April 2020

During March and April, the Squire Patton Boggs insurance group has authored several blog posts, alerts and articles on the insurance and reinsurance issues arising from the novel coronavirus pandemic.  These range from regulatory updates, to business interruption coverage analysis, to reinsurance issues.  We thought it might be good to list them here in one … Continue Reading

Does the Novel Coronavirus Cause Direct Physical Loss of or Damage to Property?

In previous blog posts and articles, we have discussed “business interruption” insurance and the typical requirement that there be “direct physical loss of or damage to property” for that coverage potentially to apply.  In this blog post, we examine the physical damage trigger further.  Why?  Because it is a central issue in the rapidly multiplying … Continue Reading

Fighting State COVID-19-Related Insurance Coverage Mandates

The novel conronavirus pandemic and the massive number of COVID-19 diagnoses have led to governmental orders closing down most non-essential businesses throughout the country.  These closures have also brought about thousands of business interruption claims by these businesses against their commercial property insurance policies.  Because most of these policies do not provide coverage for a … Continue Reading

Can Fear or Emotional Distress Associated With COVID-19 Be a “Bodily Injury”?

With the United States now having the highest number of confirmed infections in the world, the nation now finds itself in the throes of the COVID-19 pandemic. In this blog post, we continue to explore potential COVID-19 insurance coverage issues, this time focusing on whether fear of contracting COVID-19 alone or emotional damages caused by … Continue Reading

COVID-19 Coverage Litigation Escalates

As the COVID-19 pandemic brings about more shutdown orders, non-essential businesses that have been shut because of government orders are fighting to obtain insurance coverage.  The first four cases brought were declaratory judgment actions seeing orders that their policies covered the suspension of their businesses.  The latest case, however, goes a two steps further and … Continue Reading

Whether a Partial or Complete Cessation of Business Is Required for BI Coverage – COVID-19

With the COVID-19 pandemic showing few signs of slowing down in the immediate future, reality is starting to settle in on businesses and governments. As Congress and various state legislatures continue to discuss legislation aimed at remedying the economic damage caused by the pandemic, many businesses are grappling with extensive interruptions to their operations. In … Continue Reading

Some Preliminary Thoughts on Reinsurance Issues and COVID-19

All the talk about whether insurance policies will respond to COVID-19 losses causes me to think about how reinsurers will respond to COVID-19 losses if they are ceded.  There are lots of considerations, including whether the cedent’s loss payments were made on an ex gratia basis, whether civil authority orders change the dynamic, what lines … Continue Reading

COVID-19 and Waiting Periods Under Business Interruption Coverage

As the COVID-19 pandemic continues, businesses and governments are acting to flatten the curve.  Recently, California, the largest state by population, implemented an extensive quarantine statewide, affecting over 40 million people.  New York and other states and municipalities also have issued similar closure orders.  In this blog post, we continue to examine the issues surrounding … Continue Reading

Civil Authority Orders and COVID-19 Coverage

The COVID-19 pandemic is ongoing and local and state governments are issuing directives closing restaurants, movie theaters, gyms and other businesses.  Some local governments have even issued shelter-in-place orders.  In other instances, some businesses have begun closing their doors as a preemptive measure, either to reduce the spread of the virus or in response to … Continue Reading

Businesses Scramble to Assess Insurance Coverage for COVID-19

COVID-19 has sickened hundreds of thousands of people and resulted in the deaths of thousands. Millions will likely be affected. Up until very recently, there was widespread belief that some countries may be spared the level of disruption seen earlier this year. Recent events have shown this is no longer a reasonable assumption. The WHO … Continue Reading

The Facts Matter in Prospective Coverage Disputes Over COVID-19

There are two main questions in every insurance coverage dispute.  First, what are the actual facts that gave rise to the claim?  Second, what are the actual words contained in the specific insurance policy provisions relevant to the claim?  The facts and words matter because, more often than not, each claim and each policy has … Continue Reading
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