Interrupted coverage: In tangle over insurance terms, businesses’ and nonprofits’ COVID interruption claims being denied
Since the COVID-19 public health emergency began in March 2020, businesses and nonprofits nationwide have had business interruption claims denied. The COVID Coverage Litigation Tracker at the University of Pennsylvania Carey Law School reported 1,099 federal lawsuits seeking insurance coverage because of the pandemic had been filed as of Jan. 25. To date, courts have granted insurers’ motions to dismiss in 147 cases and insurers motions for summary judgment in seven lawsuits, according to CCLT. Policyholders have scored a few victories with the courts denying the motions to dismiss in 29 lawsuits and granting the plaintiffs’ motions for summary judgment in five cases.