Paul White (Partner-Los Angeles) was quoted in “DC Court Sides with Erie Insurance in COVID-19 BI Complaint” in the August 17, 2020, edition of Best’s Insurance News & Analysis. He commented on a Missouri decision that allowed five COVID-19-impacted businesses to pursue business interruption claims against their insurer, finding the all-risk policies – which don’t contain pandemic exclusions – did not require actual physical damage to trigger indemnification. Paul cautioned against extrapolating the findings in the Missouri case. “This is not a ruling on the merits,” he said. “Nor is it necessarily a significant break from the several other courts that have been willing to dismiss lawsuits seeking commercial property coverage for business losses sustained as a result of COVID-19. … The court ruled that the plaintiff plausibly stated a claim for relief sufficient to withstand dismissal at the outset,” he said. “The insured will still carry the burden to prove its allegations are true and that its claims are covered under the policy, and the insurer will still be allowed to submit facts and law to support its arguments that the insured’s claim does not fall within the coverage of the policy.”

Read the Article (subscription required).