More than a year after the coronavirus changed life as we know it, litigation regarding insurance coverage for COVID-19 losses shows no signs of slowing down.
Courts nationwide have considered hundreds of business interruption cases over the past year, and, as we’ve observed before, a policyholder’s chance of success has varied depending on such things as: (1) the language of the policy; (2) the facts alleged in the complaint; and (3) the precedent in the relevant jurisdiction. While decisions have been issued in favor of policyholders and insurers in both state and federal courts, thus far, policyholders generally have had greater success in state courts.
As the United States economy is showing signs of recovery, policyholders across the country continue to initiate lawsuits to recover their losses from this past year. These lawsuits include insureds from a variety of industries, including significant numbers of policyholders that operate in hospitality and entertainment.
Policyholders litigating their cases now have the advantage of learning from a year’s worth of precedent on these very issues. Policyholders should sharpen their complaints and arguments for coverage with the benefit of 2020 hindsight.