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Insurers' COVID-19 Notepad: What You Need to Know Now (Week of March 15) | All Alerts & Newsletters

Mar.15.2021
Courts Dismiss COVID-19 Business Interruption Claims
On March 8, 2021, the district court for the Southern District of California granted Travelers Property Casualty Company of America’s motion to dismiss a flower importer and distributor’s COVID-19 extra expense claim. The court found that the policy’s Acts or Decisions Exclusion which “bars coverage for property damage, loss, and expense that is caused by or results from any decision, act or failure to act or decide, by…any ‘governmental body,’” unambiguously excluded coverage.
See Order at 13. Because Travelers based its denial of coverage on the applicable exclusion, the court similarly dismissed the plaintiff’s breach of implied covenant of good faith and fair dealing claim. ....

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Texas Federal Court Finds No Coverage for Civil Authority Orders Issued in Preparation for Hurricane Harvey Because They Were Not Issued as a Result of Physical Loss or Property Damage | Carlton Fields

The United States District Court for the Southern District of Texas, in the matter of
Evanston Ins. Co. v. AmSpec Holding Corp., granted summary judgment in favor of Evanston Insurance Company (“Evanston”) after determining no coverage was available under a property insurance policy for Civil Authority Orders issued by the Coast Guard. No. 4:19-CV-1498, 2020 WL 6152190 (S.D. Tex. Oct. 20, 2020).
AmSpec Holding Corporation (“AmSpec”) performs testing and inspection services for oil, gas, and petrochemical industries. Amspec field inspectors travel to ports, refineries, and terminals along the Gulf Coast to inspect barges and vessels and take product samples back to AmSpec laboratories for quality testing. ....

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