Various homeowner’s insurance policies contain an appraisal clause that a carrier or insured may invoke in situations where there is a dispute in damages between the parties. However, a court may determine that a party who is seeking to invoke an appraisal clause has waived its right to appraisal by not invoking the appraisal clause timely, or by taking actions inconsistent with appraisal in litigation. In a recent opinion by a Florida appellate court, People’s Trust ... Keep Reading »
Property
A Case of Mass Listeria: Insurer’s Duty to Defend in New Jersey Contaminated Pizza Crusts Suit
Last week, in Conte’s Pasta Co. v. Republic Franklin Insurance Co., a New Jersey federal court ruled that Republic Franklin Insurance Co. was obligated to indemnify Conte’s Pasta for the costs incurred defending against a suit brought by one of its customers, Nature’s One, for damages related to listeria contamination in its gluten-free pizza crusts. Underlying Litigation In early 2017, Nature’s One contracted with Conte’s Pasta to manufacture gluten-free pizza ... Keep Reading »
Two Early Rulings in Favor of Insurers in COVID-19 Insurance Coverage Litigation
The U.S. District Court for the Southern District of New York and the Pennsylvania Supreme Court recently issued two of the first substantive rulings in COVID-19-related insurance coverage lawsuits. Both rulings were in favor of insurers. Southern District of New York Indicates COVID-19 Does Not Cause Direct Physical Loss or Damage, As Needed to Trigger Business Interruption Coverage In Social Life Magazine Inc. v. Sentinel Insurance Co., an ongoing lawsuit, the ... Keep Reading »
COVID-19 Insurance Coverage Class Actions
Over the last several months, there have been numerous lawsuits filed across the country by policyholders seeking business interruption insurance coverage for losses they claim are resulting from the COVID-19 pandemic. In the last month, the new trend has been to file many of these claims as class actions. Several of the nation’s top plaintiff-side class action law firms have filed class action lawsuits seeking coverage for nationwide classes of policyholders. These ... Keep Reading »
Louisiana, Pennsylvania, and South Carolina Join in Introducing Legislation That Would Force Insurers to Retroactively Cover COVID-19 Losses
An increasing number of state legislatures have recently introduced measures that would require the insurance industry to bear much of the burden of business interruption and other losses due to the economic downturn brought on by the global COVID-19 pandemic. Louisiana, Pennsylvania, and South Carolina are among the latest states to join in proposing legislation that would require retroactive coverage for business interruption losses related to COVID-19, despite ... Keep Reading »
Are COVID-19 Business Interruption Claims Appropriate for a Coverage Class Action?
Over the last few weeks, a tsunami of lawsuits has been filed in many states alleging a variety of issues related to the global COVID-19 pandemic. The lawsuits have targeted a variety of industries, such as banking and financial services, travel and hospitality, and retail. The property and casualty insurance industry has also been in the news as likely hundreds of thousands of policyholders have faced shutdowns of their businesses. These policyholders have looked to ... Keep Reading »
A New Bad Faith Trend Emerges in COVID-19 Business Interruption Litigation
With governments across the world ordering the shutdown of restaurants, bars, and other “non-essential” businesses due to the COVID-19 pandemic, business interruption insurance claims are, not surprisingly, on the rise. While typical commercial property policies require “direct physical loss or damage” to property — a requirement that is unlikely satisfied by the shutdowns — policyholders are getting creative, alleging that the potential presence of the novel coronavirus ... Keep Reading »
Business Interrupted: Policyholders Seek to Avoid the “Direct Physical Loss or Damage” Requirement for Business Interruption Insurance in the Wake of the COVID-19 Pandemic
The COVID-19 pandemic has swept the world, altering every aspect of daily life — whether it be a morning trip to the gym, a day at the office, a dinner at the Italian restaurant across the street, or a Friday night concert in the park. Businesses, particularly those in the service sector, have halted or restricted their operations, either voluntarily or by government order, in an effort to curb the spread. In these uncertain times, many businesses want to seek coverage ... Keep Reading »
New Jersey Proposes Bill That May Require Insurers to Cover COVID-19 Business Interruption Losses
As the United States faces a surge in confirmed cases of COVID-19, New Jersey is proposing a bill that would require property insurers that cover risks in New Jersey to pay for business interruption losses due to the disease, despite their policies expressly excluding coverage for losses due to viruses or bacteria. The law, which would take effect immediately and be retroactive to March 9, 2020, is aimed at reducing the financial impact of the coronavirus on New Jersey’s ... Keep Reading »
Flooded: Court Finds “Named Windstorm” Coverage, and Not Flood Sublimit, Applies to Superstorm Sandy Water Damage Claim
When the National Weather Service names a storm heading in your direction, you know to expect wind and water. This can create a quandary for property insurers. Is water damage from a named windstorm caused by the flood or the storm? This distinction can mean millions. In New Jersey Transit Corp. v. Certain Underwriters at Lloyd's London, a three-judge panel from the Superior Court of New Jersey held that the New Jersey Transit Corp. was entitled to $400 million in ... Keep Reading »
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