Phil's First Party Parlay - Business Interruption with Josh Autry

TL;DR

This live broadcast discusses the topic of Business Interruption Insurance Claims in relation to the COVID-19 pandemic and subsequent shutdowns, providing insights on coverage issues and considerations for filing claims.

Transcript

• All right, we are broadcasting live. Welcome to Phil's first party parlay, where we talk all things timely and topical in the insurance restoration industry. I'm Phil Sanov, trial lawyer with Morgan & Morgan's Insurance Recovery Group. With Morgan & Morgan's Insurance Recovery Group, I have 55 of the most awesome attorney colleagues, you could ev... Read More

Key Insights

• ❓ The issue of coverage for Business Interruption Insurance Claims related to COVID-19 is still untested in court.
• 🛄 Virus exclusions in insurance policies may impact the availability of coverage for these claims, but their applicability and enforceability can vary.
• 🛄 Filing a claim, even if it hasn't been done before or was previously denied, is still advised, as deadlines for filing claims may not be enforceable without evidence of prejudice to the insurance company.

Questions & Answers

Q: Are there any court rulings that determine whether insurance companies should pay Business Interruption Insurance Claims related to COVID-19?

No, there haven't been any court rulings on this issue yet as it is a relatively new and unprecedented situation. The question of coverage for virus-related claims remains open and subject to interpretation.

Q: What are virus exclusions in insurance policies, and how do they impact Business Interruption Insurance Claims?

Virus exclusions refer to clauses in insurance policies that specifically exclude coverage for losses caused by viruses or similar events. Their impact on claims may vary depending on the wording and location of these exclusions within the policy.

Q: Is it too late to file a Business Interruption Insurance Claim if I haven't done so yet?

It is advised to file a claim even if you haven't done so during the initial shutdown. In most cases, the deadlines imposed by policies for filing claims are not enforceable unless the insurance company can show prejudice due to the delay.

Q: Can I seek coverage for a subsequent shutdown if I have already filed a claim for the initial shutdown?

Instead of filing a new claim, it is recommended to submit a supplement to the original claim, outlining the additional damages and ongoing losses caused by subsequent shutdowns. This approach addresses policy language regarding deductibles and avoids treating it as a separate claim.

Summary & Key Takeaways

• The discussion revolves around the coverage of Business Interruption Insurance Claims during the COVID-19 pandemic and the potential challenges faced by policyholders.

• The first topic focuses on whether insurance companies should be obligated to pay claims related to the shutdown of businesses due to the coronavirus, as no court has ruled on this matter yet.

• The second topic explores the possibility of filing a claim for a recent or upcoming shutdown and addresses the concerns of policyholders who haven't filed a claim yet, emphasizing the importance of doing so despite potential virus exclusions.