General Liability

Expert Analysis

• 3 Insurance Principles Behind Calif. Excess Policy Ruling

  

  The California Supreme Court's recent decision in Montrose v. Los Angeles Superior Court, streamlining policyholders' ability to collect from multiple policies, is based on three state insurance principles specific to continuous injury, say attorneys at Reed Smith.

• Virus Coverage Prospects Are Bright For Ind. Policyholders

  

  Indiana’s strong history of rigorous protection for insureds and strict scrutiny of contract terms bodes well for policyholders seeking coverage for COVID-19-related losses, so they should not take denials at face value, say attorneys at Plews Shadley.

• Pa. Ruling Strengthens Arguments For COVID Loss Coverage

  

  This week, the Pennsylvania Supreme Court provided critical insight on the legal characterization and consequences of the COVID-19 crisis, finding policyholders’ business losses during the pandemic are indistinguishable from those caused by casualty events for which property-based insurance coverage has always been intended, says Jordan Rand at Klehr Harrison.

• Problematic 'Unavailability' Insurance Exception Lives On

  

  The Maryland Court of Appeals’ unfortunate decision in Rossello v. Zurich represents the second time in the last six months that a state supreme court has approved unavailability of insurance as an exception to the general rule of time-of-the-risk proration for long-tail claims, based on case law that is no longer good authority, says Michael Aylward at Morrison Mahoney.

• COVID-19 Test Providers, Beware Kickback Enforcement Tool

  

  Labs and providers offering COVID-19 tests should take several measures to reduce their risk of aggressive government prosecution of unlawful quid pro quos under the newly weaponized Eliminating Kickbacks in Recovery Act, says Joshua Robbins at Greenberg Gross.

• A Call To Action For The Coming Insurance Litigation Siege

  

  Anticipating an onslaught of insurance litigation over coronavirus business interruption claims, G. Andrew Lundberg at Burford Capital paints a picture of what cooperation could look like among lawyers, courts, legislatures, regulators, insurers and policyholders dealing with this once-in-a-generation stress on the nation's judicial resources.

• Insurers Should Act Now To Guard Against COVID-19 Claims

  

  If insurers are to stanch the flow of coverage claims from policyholders impacted by the coronavirus, they must be prepared to fight and win early cases concerning property insurance and other types of policies because even small cases could set important precedents at this stage, say attorneys at Lewis Baach.

• Reinsurers Must Prepare For Coronavirus-Related Claims

  

  Given the tremendous volume of insurance claims expected as a result of COVID-19 and the possibility that these claims will lead to reinsurance cessions, reinsurers should promptly review their assumed portfolios to determine their potential exposure, say Scott Seaman and Edward Lenci at Hinshaw & Culbertson.

• Does COVID-19 Fall Under Insurers' Pollution Exclusions?

  

  Despite inconsistent rulings from state and federal courts, an analysis of bacterial and viral contamination cases provides insight on whether COVID-19 is the type of environmental harm expected to fall within insurance policies' pollution provisions, says Elise Allen at BatesCarey.

• Should States Force Property Insurers To Cover Virus Losses?

  

  A proposed New Jersey bill requiring some commercial property insurance policies to construe the coronavirus pandemic as a covered cause of loss would likely survive a contract clause challenge, but this type of law could set a dangerous precedent, say Linda Hsu and Savannah Montanez at Selman Breitman.

• Don't Assume 'Physical Loss' Language Bars Virus Coverage

  

  A recent Law360 guest article mistakenly assumes that many standard insurance policies will not cover COVID-19 business interruptions without a specialized endorsement, when in actuality courts will not automatically deny such claims because of a physical damage requirement, says Stacy Tucker at Kantor & Kantor.

• 8 Possible Paths To Insurance Coverage For COVID-19 Losses

  

  At least some insurance policies are almost certain to apply to coronavirus-related losses, and a few hypothetical situations explain how, say attorneys at Covington.

• Future Battles Foreshadowed In First COVID-19 Insurance Suit

  

  The first insurance lawsuit on record for coronavirus coverage — Oceana Grill v. Certain Underwriters at Lloyd's, filed in Louisiana state court — highlights key questions that will be echoed across the country and underscores the importance of acting now to preserve claims, says Tae Andrews at Miller Friel.