For the past three months there has been a lot of information about Covid-19. What is not clear is how insurance policies, in particular, commercial insurance policies do or do not provide coverage for losses experienced because of Covid-19 or government reaction to Covid-19.
How these cases and the resulting lawsuits are being handled is discussed in a May 2020 article written in the National Law Review. The title of the article is, When Insurers Deny Claim, Brokers Are Next In Line For Allegations of Wrongdoing.” Here is what the article tells us.
In the wake of government orders shutting down or seriously limiting the operations of businesses to deal with the COVID-19 outbreak, many affected businesses have turned to their insurers for coverage. This has led to a flurry of lawsuits across the nation seeking rulings that such claims are covered and asserting that the failure to accept such claims constitutes breaches of contract, bad faith, and other common law and statutory violations.