Cunningham Swaim, LLP - Business

CONTACT US
DALLAS: 214-646-1495 | PASADENA: 626-765-3000 | DENVER: 303-309-8167 | PAGOSA SPRINGS: 970-884-3511 | HOUSTON: 713-668-0610 | NEW YORK: 917-538-2774

CONTACT US
DALLAS: 214-646-1495
PASADENA: 626-765-3000
DENVER: 303-309-8167
PAGOSA SPRINGS: 970-884-3511
HOUSTON: 713-668-0610
NEW YORK: 917-538-2774

DALLAS OFFICE

4015 Main Street
Suite 200
Dallas, TX 75226

214-646-1495

PASADENA OFFICE

2 N. Lake Avenue
Suite 550
Pasadena, CA 91101

626-765-3000

PAGOSA SPRINGS OFFICE

2800 Cornerstone Dr.
Building B, Suite 201
Pagosa Springs, CO 81147

970-884-3511

HOUSTON OFFICE

Two Greenway Plaza
Suite 650
Houston, TX 77046

713-668-0610

NEW YORK OFFICE

200 Broadhollow Road, Suite 207
Melville, NY 11747

917-538-2774
Focused Trial Lawyers In Dallas, Texas, Pasadena, California And Denver, Colorado
Pandemic-related insurance litigation is on the rise

Pandemic-related insurance litigation is on the rise

On Behalf of | Jul 7, 2020 | Insurance Law |

As both business owners and insurance companies attempt to navigate an uncertain world, it’s perhaps no surprise that there’s been an uptick in pandemic-related insurance litigation.

Non-essential business owners who were shut down for months are attempting to make claims for unexpected losses. Insurance providers are countering that policies don’t extend to pandemics. How these legal battles play out will undoubtedly have an impact across the country.

Testing the limits of business interruption policies

Most business interruption insurance policies provide a wide range of coverage. For example, business interruption insurance is likely to cover things such as burst pipes or severe storm damage. However, there is some question regarding how far these policies are supposed to go. Following the SARS epidemic in 2003, many insurance providers added language to their policies which excluded losses from viruses and disease.

While it seems like exclusionary language would effectively settle any debate, things become more complicated when the government orders businesses to shut down. Civil authority clauses may kick in, which can require insurers to pay for a business owner’s losses.

Absent any action from the federal level, these battles will play out on a state-by-state basis. Some state legislatures are considering bills which would require insurers to cover losses related to this pandemic.

The only thing certain in uncertain times is a feeling of uncertainty. Legal battles will play out and things will become more defined as time goes on. For now, all business owners and insurance providers can do is to make their respective cases and work toward protecting their interests. The landscape will look much different in a year or two.