Over the past two months, numerous state legislatures introduced bills targeted toward voiding the virus exclusion included in most business interruption insurance provisions in commercial property policies. None of the bills have made significant advances, likely due to a combination of lobbying efforts by the insurance industry and the constitutional challenge to any law that
Business interruption insurance
Business Interruption Insurance: The Ongoing Case for Coverage
By Donald A. Ottaunick on
Posted in General Business Information
Since COVID-19 swept through the country, numerous articles have commented on the lack of business interruption insurance in commercial property policies based on two key standard policy provisions – (i) the loss of net income caused by “direct physical loss of insured property” and (ii) the Virus Exclusion. As a general rule of interpretation,…
Business Interruption Insurance Update: State Legislatures Taking Steps to Protect Businesses Impacted by COVID-19 Losses
By Donald A. Ottaunick on
Posted in General Business, Recent Developments
In our most recent post, we addressed the New Jersey Legislature’s attempt to override terms and exclusions embodied in virtually all commercial Business Interruption Insurance policies including the “virus” exclusion and the requirement that the damage be attributable to a “direct physical loss of insured property.” That bill, A3844 was passed by the State Assembly’s…
COVID-19 Business Interruption Insurance Update
By Donald A. Ottaunick on
Posted in General Business Information, Recent Developments
As each day of this crisis passes, developments on the insurance front continue to unfold. Many articles have been written by law firms, insurance industry experts and even by members of the insurance industry on the lack of business interruption insurance to respond to the significant losses that will be experienced as a result of…