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UK Supreme Court Rules BI Insurance to Cover Pandemic Losses


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U.K. high court extends reach of business interruption coverage for policy holders – What do U.S. insurers need to know?
Tuesday, January 26, 2021
Last week, the United Kingdom’s Supreme Court issued a landmark ruling (the “Judgment”) analyzing the extent to which business interruption coverage applies to losses caused by the 2019 novel coronavirus (COVID-19) pandemic and resulting government restrictions. In a ruling that bucked the trend of most American decisions on the topic, the U.K. Supreme Court found that some losses caused by COVID-19 and consequent local or national restrictions should be covered by business interruption coverage.
The FCA Ruling 

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COVID-19: COVID-19 Insurance Coverage Developments The National Landscape and the State of Play in Pennsylvania | K&L Gates LLP


The State of Play In Pennsylvania
According to the UPenn Covid Tracker, approximately 180 COVID-19-related coverage suits have been brought in Pennsylvania courts. As is the case nationally, most of the Pennsylvania cases are pending in federal courts. Also, according to the UPenn Covid Tracker, there have been 12) “merits” decisions by Pennsylvania courts’ rulings on insurer motions to dismiss. Nine of these decisions have been issued by the Eastern District of Pennsylvania, (1) by the Western District of Pennsylvania and (2) by the Court of Common Pleas of Philadelphia County.
Decisions by Pennsylvania State Courts (Pennsylvania Court of Common Pleas)
Ridley Park Fitness v. Philadelphia Indem. Ins. Co.

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COVID-19 Business Interruption Suits: An Overview Of Decisions To Date | Goodwin


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The ongoing COVID-19 pandemic has impacted the United States economy in a profoundly negative manner. Retail stores, restaurants and other direct-customer-facing businesses have been especially hard hit. Throughout the U.S., most states and municipalities have at various points throughout the pandemic issued “shut down” orders to businesses in order to mitigate the spread of the virus. Businesses complied and suffered tremendous losses as a result. As we forecasted, many businesses subsequently filed claims with their commercial liability insurers, typically claiming that their losses are covered under the “business interruption” or the “civil authority” provisions of their policies. Those provisions are generally intended to provide coverage as follows:

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Business Interruption Coverage in the Year of COVID-19 | Burr & Forman


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COVID-19 has certainly been a devastating and disrupting force for businesses in 2020. Since the pandemic began, a major point of contention between corporate policyholders and insurers is whether these disruptions rise to “business interruptions” as defined under insurance policies offering business interruption (BI) coverage. Companies often purchase BI coverage as part of traditional “all-risk” commercial property policies., and the coverage is generally designed to cover lost income (often in the form of reduced gross earnings) arising from disruptions to an insured’s business operations. This update serves as a brief summary of how coronavirus-related BI coverage litigation has panned out thus far.

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