I received a flyer today from a law firm. It offered to “prosecute claims” against our commercial insurer for any “business interruption insurance” we may have. It even included a contract for 33 1/3 of anything they collect.
1) Sign the agreement. 2) Take a picture of the agreement. 3) Text the picture to a phone number.
I’ve been predicting this kind of stuff. There will be all sorts of litigation coming out of this.
Since I am an attorney that handles claims against insurance companies, I know something about this issue.
Generally speaking, your typical comprehensive business liability policy covers claims for loss arising when there is an “occurrence” caused by “bodily injury” or “property damage”. And, such policies provide business interruption coverage on the same basis.
What insurers are going to argue is that loss caused by a lockdown is the result of government action, and not caused by bodily injury or property damage.
Claimants are going to argue that Coronavirus does cause physical damage to people and property, and that when the government imposes a lockdown to forestall such bodily injury and property damage, that triggers coverage under the policy.
I know of a couple cases that have already been filed in Louisiana and California raising these issues.
If I had to guess, I would guess courts are generally going to agree with the insurers’ position. Simply because holding otherwise is likely to bankrupt the entire insurance industry.
But that’s just a guess. We won’t really begin to know for sure until there is a final appellate court decision, which won’t happen for at least a year, and maybe two or more.