Navigating the Insurance Landscape Amid COVID-19: Insights and Implications

Restaurants Sue Insurers Over Business Interruption Claims

Proprietors of more than 10 restaurants, bars, and bakeries in Washington, D.C., have joined a growing list of restaurateurs seeking coverage for pandemic-related damages, The Washington Post reports. The Post interviewed Triple-I CEO Sean Kevelighan and Triple-I non-resident scholar Michael Menapace, who explained why the suits are unreasonable and threaten the insurance industry’s solvency.

La. Lawmakers Scrap Business Interruption Bill

Louisiana lawmakers scrapped a bill that would have forced insurers to cover retroactive business interruption claims due to COVID-19, Business Insurance reports. However, state senators agreed to rewrite and amend Senate Bill 477 to allow a proposal requiring insurers to clarify exclusions on business interruption policies to move ahead.

Pa. Bill Would Define COVID-19 as Property Damage

The Pennsylvania Senate is weighing a bill that would include losses spurred by the COVID-19 global pandemic under property and business interruption insurance coverage, Property/Casualty 360 reports. Senate Bill 1127 doesn’t explicitly state that insurers must cover COVID-19 business interruption claims. The bill states that if a covered property is located within a municipality where “the presence of the COVID-19 coronavirus has otherwise been detected,” that property is “deemed to have experienced property damage.”

In conclusion, understanding the nuances of business interruption insurance and its application during the COVID-19 pandemic is crucial for businesses. It is advisable to review existing insurance policies thoroughly and consult with insurance professionals to ensure comprehensive coverage. Staying informed about legislative changes and industry trends can also help in making informed decisions.