COVID-19 and Business Interruption Insurance: Coverage Issues and Exclusions

The full impact of COVID-19 remains unknown, but insurers and policyholders are seeing claimed losses and liabilities potentially in the billions of dollars in relation to claimed canceled events, delays in work and repairs, lost revenue, lack of access, employment issues and potential liabilities for alleged action or inaction by D&Os and others.

Companies impacted by this global crisis might have insurance which insures certain damage, lost earnings and liabilities that may be incurred by infected people or stockholders or third parties who allege that a company responded to the COVID-19 outbreak in an improper manner. There are significant insurance issues that will need to be addressed as part of this claims complex including:

• What is direct physical loss or damage?
• Does the scope and terms of a civil authority order bar access?
• What specific wording must be complied with to trigger Event Cancellation, Postponement or Reduction Insurance and how does governmental guidance / orders play a role in this?
• Do the wide variety of liability products potentially respond to COVID-19 claims?
• How will the ever-changing status of civil guidance and orders may affect coverage now and down the road?
• The scope of contamination virus and communicable disease sublimits and exclusions?

Listen as the panel addresses what types of policies are most likely to offer coverage and what are the obstacles to coverage, including whether the presence of contagion like COVID-19 constitutes property damage.