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COVID-19 insurance coverage cases are hitting appellate courts

Businesses have filed nearly 1,700 lawsuits for business interruption coverage claims following lockdowns in 2020.

By Michael Riccardi | May 19, 2021 at 12:00 AM
There are now 120 cases on appeal, in both state and federal courts, that allege insurance companies wrongfully denied coverage for pandemic-related business interruption claims. Lawyers are awaiting rulings from the Ohio Supreme Court, the District of Columbia Court of Appeals and the Oklahoma Supreme Court, as well as the U.S. Court of Appeals’ Ninth Circuit and Eighth Circuit. (Credit: VDB Photos/Shutterstock) There are now 120 cases on appeal, in both state and federal courts, that allege insurance companies wrongfully denied coverage for pandemic-related business interruption claims. Lawyers are awaiting rulings from the Ohio Supreme Court, the District of Columbia Court of Appeals and the Oklahoma Supreme Court, as well as the U.S. Court of Appeals Ninth Circuit and Eighth Circuit. (Credit: VDB Photos/Shutterstock)

The highest courts in three states and at least two federal circuit courts are preparing to take up cases filed against insurance companies over business interruption claims stemming from the pandemic.

Nearly 1,700 lawsuits have been filed by businesses against their insurers, which denied claims for business interruption coverage submitted after state and local government officials ordered lockdowns throughout the country last year. Most judges, particularly in federal courts, have sided with the insurers, which have insisted that COVID-19 did not result in a physical loss or damage to their properties, as required under the policies. But some courts have sided with policyholders, leaving businesses a window of opportunity to pursue the claims further.

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