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Business Insurance on Trial: The Battle Over COVID-19 Loss Coverage


 
  • Businesses are suing their insurance companies for losses related to the COVID-19 pandemic
  • The lawsuits are shifting from federal to state courts
  • The insurance companies argue that the pandemic is not covered under most business interruption policies
  • Businesses argue that the pandemic should be considered a "physical loss" and therefore covered by the policies
  • The outcome of these lawsuits could have a significant impact on the insurance industry and on the businesses that are seeking coverage for their losses

According to a new Reuters report, the COVID-19 pandemic has had a devastating impact on businesses across the country. As a result, many of these businesses are now turning to their insurance companies for coverage of their losses. However, insurance companies are arguing that the pandemic is not covered under most business interruption policies. This has led to a battle between businesses and insurance companies, with lawsuits being filed in both federal and state courts.

One of the key issues at the center of these lawsuits is whether or not the pandemic should be considered a "physical loss." Businesses are arguing that the pandemic has caused a physical loss of income and property, and therefore should be covered under their policies. On the other hand, insurance companies are arguing that the pandemic is a global event that is not covered under most policies.

The outcome of these lawsuits could have a significant impact on both the insurance industry and on the businesses that are seeking coverage for their losses. If businesses are successful in their lawsuits, it could lead to a significant payout for the losses they have incurred. However, if insurance companies are successful, it could mean that many businesses will be left without any coverage for the losses they have suffered.

As the lawsuits continue to be heard in both federal and state courts, it remains to be seen how this battle will play out. However, one thing is certain: the outcome of these lawsuits will have far-reaching implications for both businesses and the insurance industry. Businesses should carefully review their insurance policies and consult with legal counsel to determine if they may have coverage for their losses related to the pandemic.

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