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Woman hanging a closed sign on a shop door. To date, most U.S. courts have ruled in favor of insurers in COVID-19 business interruption coverage suits. (Photo: Shutterstock)

Since the inception of COVID-19 and the state shutdown orders that followed, businesses have filed hundreds of lawsuits against their insurers seeking coverage for lost revenue and other business interruption losses. In the ensuing six months, we have seen a handful of court decisions mostly favoring insurers but with some policyholder wins.

On the opposite side of the spectrum, states continue to propose legislation that would require insurers who provide property insurance to cover business interruption during the coronavirus pandemic. As businesses reopen and the country braces for a potential second wave, insurers and policyholders alike can learn from these early legal developments and proactively respond to business interruption.

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