Coronavirus Bad Faith Litigation Has Begun

Businesses across the nation have been filing claims for coverage under their business interruption and losses policies. The claims are that the companies were closed and suffered losses due to the pandemic. As stated by AMFS, an expert broker company, “[s]ome carriers have reportedly taken the position that these claims do not fall within coverage. Typically, insurance policies for business interruption require that the insured suffer a ‘physical loss of or damage to property.’” Carriers are arguing that being shut down due to a virus is not “physical loss or damage to property.” Some policies, however, include language that covers “all risk” or, more specifically, closures due to “civil authority.” Think of airlines being grounded after 9/11. Class actions have already begun citing this language. If you may be a member of the class, please make sure that you take action. If your business suffered losses and you have business interruption coverage, feel free to contact Schlesinger Conrad, a business litigation law firm in Phoenix for a free consultation regarding losses in Arizona or California.