US COVID-19 BI ruling ‘undeniably positive for the P&C industry’


US COVID-19 BI ruling ‘undeniably positive for the P&C industry’

Certain businesses continue to see falling turnover as a result of pandemic-related shutdowns and restrictions. Now, another court case has offered insurers greater hope that judges will support their position that not all business interruption claims should be paid. Intelligent Insurer investigates.

“You’re going to get some fascinating or troubling precedents, and different decisions from different courts.” Meyer Shields, managing director, Keefe, Bruyette & Woods. 

· Judge highlights similar BI claims in 1960s that were denied
· Mayor’s orders “didn’t effect material or tangible structure” of properties 
· The political makeup of the state has a bearing on court outcomes
· Some losses are likely as courts not expected to rule uniformly


With business interruption litigation expected to continue for several years insurers will be hoping for more cases where the ruling goes in their favour.

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