Property

  • August 02, 2021

    Burlington Wants $750M Virus Suit Back In NJ State Court

    Burlington Stores' suit against Zurich American Insurance over more than $750 million in pandemic-related losses belongs in state court, the retailer told a New Jersey federal court, saying the court should not resolve the novel insurance issue without guidance from state law.

  • August 02, 2021

    Planet Hollywood Stands Behind COVID-19 Coverage Suit

    Planet Hollywood has pushed back against Zurich American Insurance Co.'s bid to toss the restaurant chain's business interruption suit in Florida federal court over COVID-19 pandemic losses, saying it has plausibly alleged "direct physical loss of or damage to" its property.

  • July 30, 2021

    Ross Keeps Billion-Dollar COVID Loss Suit Against Insurers

    A California state judge has given Ross Stores Inc. the green light to pursue its COVID-19 business interruption claims against Zurich, AIG and other insurers, rejecting the carriers' dismissal motions and saying a contamination exclusion may not bar virus losses.

  • July 30, 2021

    Pa. Health Network Says Virus Losses Covered By Policy

    American Guarantee and Liability Insurance Co. has not provided a reasonable explanation for why it refused a Pennsylvania-based health network's claims for COVID-19-related losses under its $1 billion insurance policy, Allegheny Health Network has alleged in a lawsuit.

  • July 30, 2021

    Trade Group Joins COVID Coverage Fray At Ohio High Court

    A policyholder trade group has backed an Ohio audiology practice in a COVID-19 coverage suit before the state's Supreme Court, arguing the practice's inability to use its property due to an unsafe physical condition outside its control "is the exact type" of physical loss and damage that its policy covers.

  • July 30, 2021

    London Insurer Hits Tanning Co. With COVID-19 Coverage Suit

    A spa and beauty company can't recover for lost revenue from shutting down under COVID-19 closure orders, a London insurance syndicate said in a California federal suit, as there wasn't any physical damage and the policy excludes coverage for seizure of illegal property.

  • July 30, 2021

    NJ Apparel Store's COVID Suit Doomed By Virus Exclusion

    West American Insurance Co. does not owe a New Jersey sports apparel store for financial losses it incurred when it was forced to close because of the COVID-19 pandemic, a New Jersey federal judge has ruled, citing the policy's virus exclusion.

  • July 30, 2021

    Frozen Yogurt Co. Accuses Insurance Broker Of Deception

    An Arkansas operator of Menchie's Frozen Yogurt stores has sued its insurance broker, alleging the broker failed to include the company's warehouse in the policies and caused it significant damage after its product spoiled in the warehouse.

  • July 29, 2021

    Fireman's Fund Checks Out Of Hotelier's Virus Coverage Suit

    An Indiana federal judge has ruled in favor of Fireman's Fund Insurance Co. in a COVID-19 insurance dispute, finding that the hotel owner behind the suit is not entitled to coverage under its policy because the insured property did not suffer a direct physical loss or damage from the coronavirus.

  • July 29, 2021

    Judge Throws Out Dental Clinics' COVID Suit Against Insurer

    A federal judge shut down a COVID-19 lawsuit brought by the operators of nearly 50 dental clinics in Arkansas and Missouri, ruling the Cincinnati Insurance Co. policy clearly stated there must be direct physical loss or damage for coverage to apply.

  • July 29, 2021

    Insurer Asks 2nd Circ. To Chop Martial Arts Studio's Virus Suit

    Philadelphia Indemnity Insurance Co. urged the Second Circuit on Wednesday not to revive a New York martial arts studio's COVID-19 lawsuit for business losses that was tossed by a lower court in April.

  • July 28, 2021

    Liberty Mutual Leads Bid To Nix Hotels' $600M Virus Suit

    A Liberty Mutual Insurance unit and eight other insurers don't owe Highgate Hotels LP $600 million in coverage for COVID-19-related losses, the companies told a New Jersey state court Monday.

  • July 28, 2021

    Insurer Looks To Toss La. Car Dealers' COVID Coverage Suit

    Car dealerships in Louisiana failed to show how COVID-19 caused physical loss or damage in their insurance coverage lawsuit, Starr Surplus Lines Insurance told a Louisiana federal judge Wednesday in its bid to dismiss the suit.

  • July 28, 2021

    Insurer Asks 5th Circ. To Nix Eateries' Virus Coverage Suit

    State Automobile Mutual Insurance Co. has urged the Fifth Circuit to toss a COVID-19 coverage suit filed by two Texas barbecue restaurants, arguing that the eateries hadn't suffered any property damage to trigger coverage.

  • July 27, 2021

    Insurance Groups Tell 4th Circ. COVID Losses Not Covered

    Two insurance company trade groups once again threw their support behind insurers fighting against COVID-19 business interruption cases, telling the Fourth Circuit on Tuesday that property carriers are not responsible for all of society's misfortunes.

  • July 27, 2021

    Clinics Tell 9th Circ. Droplets, Not Virus, Caused Damage

    Two clinics told the Ninth Circuit that their insurance coverage disputes over pandemic-related losses should be revived, arguing that California federal judges erred when rejecting the clinics' arguments that human respiratory droplets caused physical damage to their properties.

  • July 27, 2021

    Fla. Condo Can't Get Coverage For Mold Row, Insurer Says

    James River Insurance Co. asked a Florida federal court Monday to determine that it does not need to cover or defend a Sunshine State condo association in a lawsuit over mold damage in the building.

  • July 27, 2021

    NY's Biggest Health System Loses COVID-19 Coverage Suit

    New York's largest health provider can't collect $1.25 billion in insurance coverage for pandemic-related revenue losses and increased costs from caring for COVID-19 patients, a New York federal judge has ruled, dismissing Northwell Health Inc.'s case against its insurers

  • July 27, 2021

    Conn. Medical Practices Want Partial COVID-19 Coverage Win

    Medical practices in Connecticut told a state court on Monday that the imminent risks posed by the COVID-19 pandemic and the transmission of the virus along with government closure orders caused "direct physical loss" of property.

  • July 27, 2021

    Florida Pub's COVID Suit Against Insurer Barred By Judge

    A federal judge dismissed a Florida pub's COVID-19 lawsuit against Westchester Surplus Lines Insurance Co., saying the court was unconvinced by Ice House Pub's arguments that its pandemic losses were covered under its policy.

  • July 27, 2021

    Mass. Hair Salon's Pandemic Coverage Suit Gets Tossed

    A putative class of salon owners seeking to recover pandemic-related losses from their insurer was swept out of a Massachusetts federal court after a judge held that government stay-at-home orders were not issued as a result of physical damage to properties.

  • July 26, 2021

    Calif. Ad Agency Sues Chubb Unit For COVID-19 Coverage

    A California marketing agency specializing in movie trailers says a Chubb subsidiary should have covered its losses after COVID-19 closed its offices and the theaters it depends on.

  • July 26, 2021

    Catholic College In Texas Out Of Luck For COVID Losses

    A Texas federal judge ruled Friday that a Houston-based Catholic University cannot claim losses from COVID-19 under its American Home Assurance Co. insurance policy because there was no physical damage caused by the virus.

  • July 26, 2021

    'The Morning Show' Production Co. Hits Chubb With $44M Suit

    The production company behind "The Morning Show" sued Chubb National Insurance for $44 million in coronavirus pandemic-related losses after production of the second season of the hit Apple TV+ show was delayed.

  • July 23, 2021

    Natural History Museum Sues For COVID-19 Coverage

    The American Museum of Natural History sued Affiliated FM Insurance Co. on Friday, claiming the insurer wrongly denied it coverage for the millions of dollars in losses it suffered when it was forced to close its doors because of the COVID-19 pandemic.

Expert Analysis

  • Where Insurance Coverage For Condo Collapse Gets Murky

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    Property and casualty coverage for the Champlain Towers tragedy may be complicated, since different versions of collapse coverage are found in different policies, both for the individual condo owners and the condominium association, say Glenn Jacobson and Mark Binsky at Abrams Gorelick.

  • Courts Should Heed Contract Law In COVID-19 Physical Loss

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    While a recent Law360 guest article urged courts to adopt the particle theory of coverage in deciding COVID-19-related property loss and damage claims, this approach ignores the intent, function and language of commercial insurance policies — not to mention the science itself, say Adam Fleischer and Elisabeth Ross at BatesCarey.

  • COVID Insurance Rulings Are Misinterpreting 'Physical Loss'

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    Recent court decisions interpreting "direct physical loss" clauses to deny COVID-19 business interruption recovery where the subject property has not been structurally altered contradict the purpose of all-risks insurance, the ordinary meaning of the operative policy language and pre-pandemic case law, says ​​​​​​​Lee Epstein at Flaster Greenberg.

  • Courts Should Defer To Science On COVID-19 Physical Loss

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    As litigation of pandemic-related business interruption claims continues nationwide, the insurance carriers and courts adopting the most conservative interpretation of "physical loss or damage" — the basic trigger for business interruption coverage — are making erroneous assumptions about a complex physical phenomenon, says Micah Skidmore at Haynes and Boone.

  • An Insurer's Guide To Policyholder Bankruptcy

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    Given the increased likelihood of policyholders filing bankruptcy petitions in the wake of the pandemic, insurance professionals must be aware of five basic principles when dealing with an insured in bankruptcy, says Eric Fitzgerald at Goldberg Segalla.

  • NJ Policyholders Could Still See Recovery For COVID Losses

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    Although New Jersey state and federal courts have decided the majority of dispositive motions in COVID-19 business interruption insurance cases in favor of insurers, policyholders retain a plausible path to recovery depending on the nature of their loss and the precise policy language at issue, say Lee Epstein and Matthew Goldstein at Flaster Greenberg.

  • COVID Rulings May Support Ransomware Insurance Denials

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    A recent spate of pandemic-related insurance decisions — where federal courts found that a temporary inability to use property doesn't qualify as physical loss or damage for coverage purposes — may be used as favorable precedent by cyber insurers denying ransomware loss claims for temporary inability to access data, say Thomas Caswell and Peter Kelly Golfman at Zelle.

  • 3 Risk Management Lessons From Pandemic Insurance Wars

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    As appellate decisions in COVID-19 business interruption insurance claims continue to clarify the state of the law, there are some things that policyholders' lawyers and risk managers can do in the meantime to help prepare for future unforeseen events affecting coverage, says Peter Halprin at Pasich.

  • Why Legacy Insurance May Not Protect Adopters Of Bitcoin

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    Evidenced by El Salvador's adoption of the Bitcoin standard this week, there is an emerging need for insurance products to cover the risk of owning and holding the digital asset, as it may not fall into the protected categories in legacy insurance products, say attorneys at Mound Cotton.

  • Insurers Have Cause For Optimism In Labor Cost Rulings

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    Recent decisions from the high courts of South Carolina and North Carolina — holding that embedded labor costs can be depreciated from the replacement cost of property — bolster insurers’ moderate edge in these disputes and point to important implications for both insureds and insurers, says Richard Mason at MasonADR.

  • Insurance Could Be A Solution To Microchip Shortage Losses

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    To the extent that companies experiencing lost income from the global microchip shortage have contingent business interruption or dependent property coverage and can trace their impaired revenues to physical loss or damage to a supplier, there may be some potential for insurance recovery, says Micah Skidmore at Haynes and Boone.

  • Outliers Offer False Hope For Virus Biz Interruption Claims

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    A few recent policyholder wins have caused some to overstate the potential for recovery in commercial property claims over COVID-19 prevention efforts, but in reality business interruption decisions are consistently and overwhelmingly favoring insurers, say Erin Bradham and Keith Moskowitz at Dentons.