Facing a global recession thought to be the deepest since the Great Depression of the 1930s, the global P&C insurance industry can expect premiums to contract by 0.1% in 2020, before rebounding alongside the economy in 2021, a new Swiss…
The question of whether non-essential businesses that closed during the pandemic are entitled to claim insurance – specifically, for cover arising as a direct result of an outbreak of contagious or infectious disease within 25 kilometres that is required by…
Lloyd’s of London is proposing three “open-source frameworks” to provide a blueprint for better protecting society against systemic catastrophic events such as pandemics, after noting the market will pay out between $3 billion and $4.3 billion to its global customers…
If the property and casualty insurance industry wants to avoid future entanglements around business interruption insurance, as seen during the coronavirus pandemic, then a robust public-private partnership (P3) might provide a solution. COVID-19 has highlighted the issue of how to…
A commercial insurer could end up paying for losses that the carrier never intended to cover if a business interruption insurance policy covers government orders or advice to shut down a workplace without clearly excluding something like a widespread pandemic,…
The outcome of an ongoing British test case for business interruption during a pandemic could set a precedent for commercial coverage disputes in Canada, a Toronto-based insurance defence lawyer suggests. Britain’s Financial Conduct Authority (FCA) is scheduled to file a…
Commercial insurers who deny business interruption claims during COVID-19 could be sued by clients whose legal fees come from third-party litigation funding providers, an industry watcher suggests. “One thing that is happening now is a lot of insurance companies are…
Fewer than 1% of the commercial property policies that Intact Financial Corp. writes should incur business interruption claims from the coronavirus pandemic, company officials suggested Wednesday. But the insurer has set aside more than $80 million to account for possible…
If a commercial insurer does not want business interruption covering a pandemic-related exposure, how should the policy be worded? One insurance defence lawyer would advise the carrier to add a section entitled ‘Pandemic/viral/bacterial infection’ to the list of exclusions. “I…
Battle stations, everyone. This is not a drill. Repeat: This is not a drill. COVID-19 has infected the world, and P&C organizations are not immune to the impact of the novel coronavirus. But a proper, well-rehearsed business continuity plan can…
Believe it or not, some commercial clients expect business interruption insurance to cover loss of income if the business gets interrupted, even if the cause of the interruption is a pandemic. Regina restaurant owner Thomas Siarkos is one such client.…
Businesses can lose revenue in any number of ways. Increasingly, they can be shut down for political risks that are beyond the company’s control. Examples of emerging business interruption risks include trade wars, armed conflicts, or political protests. As businesses…