No, insurers may not have a good case to decline business interruption claims

No, insurers may not have a good case to decline business interruption claims

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Insurers and companies are preparing to battle over claims of business interruption due to the coronavirus pandemic. According to this expert and accessible report from Standard & Poor’s professionals Hailey Ross and Jason Woleben, the acceptance or denial of claims rests on the interpretation of policy language, so expect attorneys to be closely examining contract provisions and courts to be hearing many of the disputes. Give the potential scale of claims, both insurers and businesses have much to litigate.


The COVID-19 pandemic forced a shutdown of many businesses in the United States, leading to a spate of business interruption insurance filings.

As a result of government-ordered business closures due to COVID-19, US companies have been filing business interruption coverage claims with their insurance carriers.

Insurers have been rejecting these claims on the grounds that the contracts were not intended to cover an occurrence of such magnitude as the coronavirus pandemic. Insurance firms contend that paying the claims would bankrupt the industry.

Interpretation of policy coverage will take center stage in litigation proceedings.

The courts...

About the Authors

Hailey Ross is an insurance reporter with S&P Global Market Intelligence, where Jason Woleben is a research analyst.

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