Law.com Litigation Trendspotter: COVID-19 Business Interruption Rulings Snowballing in Favor of Insurers
The momentum in favor of insurers in business interruption litigation has picked up speed in recent weeks, with more federal appeals courts, as well as the first two state high courts in the U.S., rejecting policyholders' claims that COVID-19 caused "direct physical harm or damage" to their properties.
May 02, 2022 at 11:03 PM
7 minute read
Photo: Shutterstock
The Trend:
The momentum in favor of the insurance industry in business interruption litigation has picked up speed in recent weeks, with another federal appeals court, as well as the first two state high courts in the U.S., rejecting policyholders' claims that COVID-19 caused "direct physical harm or damage" to their properties.
But at least one federal court has refused to consider the matter entirely settled, creating a small sliver of hope for insureds in some of these matters.
The Driver:
With the majority of federal appeals courts siding with insurers in these cases, state and federal courts now have a more solid blueprint to follow in these cases than they did even six months ago.
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