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…
The social and economic impact of the novel coronavirus pandemic in 2020 is truly horrifying, saddening, and staggering. Many of us have lost loved ones, or know people who are out of work because of the potentially lethal virus moving…
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…
A Laval area restaurant that says it has lost more than $700,000 in two months as a result of the pandemic is not taking no for an answer from the insurer, who says business interruption coverage does not apply because…
The insurance industry set itself up for a public relations disaster when it comes to business interruption claims, and it should be prepared to be called out more often on the name given to the coverage, says one risk researcher.…
If a client temporarily closes his business because of a provincial order arising from COVID-19, does its business interruption kick in if the policy covers “damage caused by order of civil authority to retard or prevent a conflagration or other…
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…
When business interruption coverage disputes arising from COVID-19 make their way into court, judges may look at whether insurers priced for pandemic, but by far the key consideration will be policy language, says one insurance defence lawyer. “Because an insurance…
Commercial insurers may say that business interruption does not normally apply to the pandemic because coverage only kicks in when there is an insurable property loss. However, some clients’ lawyers are arguing the coronavirus should in fact be considered a…
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.…
Brokers advising commercial clients that business interruption is not usually covered during a pandemic should not be surprised if those clients are hearing something different from their lawyers. “I would caution policyholders to thoroughly review their specific policy language before…
After recent events surrounding the COVID-19 pandemic, in addition to a recent Ontario Superior Court decision about business interruption in a nuclear incident, Canadian P&C underwriters may want to take a second look at the wording of their pandemic exclusions…