Are Business Losses for COVID-19 Covered?

Angelia D. Wesch and Ashley J. Sherwood authored “Are Business Losses for COVID-19 Covered?” that appeared in the Seattle Daily Journal of Commerce on January 29, 2021.

Washington policyholders have a better shot at obtaining coverage for COVID related losses than policy holders in other states around the country, continuing a trend and reputational status for Washington as a generally pro-policyholder state when it comes to coverage interpretation.

Ten months ago, construction, real estate, and insurance coverage lawyers from all over the country started receiving phone calls from clients frantic with questions over how to handle a host of issues caused by COVID shutdowns.  At the time, no one was certain as to how the courts would eventually resolve inevitable disputes between contractor/owner, landlord/tenant, or insurer/insured.

The wheels of justice turned even more slowly in 2020, with courts limiting operations and most folks navigating how to work from home; however, there is now a decent sample size of litigation to examine as it relates to insurance coverage for COVID-related losses.  The legislative branch is also getting in on the action, albeit with slightly different COVID-concerns in mind.  The insurance industry had hoped for legislation that would shield their insureds from COVID-related litigation as they continue to operate during the pandemic and hoped the GOP would advocate for their agenda. As Senate control is now with the Democrats, such legislation is unlikely based on pressure from unions, consumer protection organizations and even trial attorneys who have urged Democrats to reject the proposed corporate shield.

To read the full article please click here. You can also view a PDF version of this article here.

To read Oles Morrison’s full coverage of COVID 19, please click here.