Business Interruption Insurance

March 30, 2020

Businesses often carry insurance to cover losses caused by a variety of events or perils.  Restrictions, closures, whether voluntary or not, and policies related to COVID-19 are negatively impacting businesses and affecting bottom lines.  As a result, business owners are asking whether they are insured for their losses due to COVID-19 like they might be for other events or perils such as a fire or tornado.  Litigation of this issue has already started with the recent filing of a lawsuit in Louisiana District Court, Orleans Parish, by an insured business seeking coverage for its losses caused by COVID-19  (Cajun Conti LLC, et al. v. Certain Underwriters at Lloyd’s, London, et al., No. 2020-02558)  While this case is sure to be followed closely, it is not likely to provide a universal “yes” or “no” answer to whether your business is covered for COVID-19 losses because the question of coverage boils down to your particular facts and circumstances, your policy language and the applicable law that dictates how your policy is interpreted.

If you have questions about whether your business is insured for the impact of COVID-19, please contact Dan Peters or any other member of our Dispute Resolution team.

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