Business interruption

Recent Covid 19 BI judgments raise fresh questions over reinsurance recoveries

It’s been an unusually busy few weeks for disputes relating to Covid-19 business interruption claims.

China Taiping secures important UK Covid-19 BI arbitration victory

China Taiping Insurance (UK) has successfully defended a UK Covid-19 business interruption arbitration claim brought by a group of 183 policyholders, including restaurants, cafes and public houses.

IAG and Suncorp maintain BI provisions despite insurers’ Covid-19 victory in Australia

Australian insurers IAG and Suncorp have warned it is too early to provide updated guidance on pandemic-related business interruption claims after the Federal Court upheld insurers’ arguments in eight of nine matters in a Covid-19 test case.

Australia federal court rules in insurers’ favour in Covid BI test case

The Federal Court of Australia has upheld insurers’ arguments in eight of nine matters in a Covid-19 test case, with the Insurance Council of Australia (ICA) noting substantial issues as to whether the policyholder could prove any relevant business interruption in the other matter.

Santam loses Covid BI appeal in South African court

South Africa’s Supreme Court of Appeal (SCA) has ruled that Santam must cover the impact of Covid-19 restrictions on a hotel group for 18 months in a denial of the insurer’s efforts to shorten the time frame.

Ninth Circuit hands down three more wins for insurers in Covid appeals

The Ninth Circuit has affirmed the dismissal of three Covid-19 business interruption (BI) disputes, in cases involving a children’s clothing store, a dental appliance manufacturer and two dozen minor league baseball teams.

Sixth Circuit issues another insurer-favourable ruling

The Sixth Circuit has vacated a grant of summary judgment to a policyholder in a Covid-19 business interruption litigation against Zurich, with the appeals court issuing its latest order a week after it affirmed mutual insurer Acuity Insurance’s dismissal of another Covid-19 case.

Zurich denied dismissal of healthcare provider Novant’s Covid suit

A North Carolina district court judge has denied a Zurich subsidiary’s motion to dismiss in a Covid-19 business interruption case brought by Novant Health, which is seeking hundreds of millions of dollars under a policy with a $1.5bn limit.

6th Circuit hands insurers third appellate Covid-19 BI win

The Sixth Circuit has affirmed mutual insurer Acuity Insurance’s dismissal of a Covid-19 business interruption case brought by an Ohio-based Italian restaurant, marking the third win for the industry at an appeal court following similar rulings from the Eighth and Eleventh Circuits.

Missouri judge sends CinFin BI case to trial despite 8th Circuit ruling

A district court judge in Missouri has denied Cincinnati Insurance’s summary judgment motion in a Covid-19 business interruption case brought by a bar owner, in a ruling that stated the insurer’s win in the Eighth Circuit’s Oral Surgeons decision does not preclude coverage.

FCA boss welcomes insurer BI progress as payouts top £1bn

Nikhil Rathi, the chief executive of the Financial Conduct Authority, has welcomed the efforts of the UK insurance sector in processing approximately £1bn ($1.37bn) in payouts to SME policyholders in the wake of the regulator’s test case on Covid-19 business interruption claims.

Hiscox most exposed to Covid BI reinsurance failure as impasse continues

UK insurer Hiscox is by far the most heavily leveraged to its reinsurers among the large listed Lloyd’s carriers, highlighting its vulnerability in the event of a failure to collect its assumed share of Covid-19 business interruption reinsurance recoveries, research by The Insurer highlights.

UK Covid-19 BI payouts top £1bn

UK insurers have paid out £1.025bn ($1.41bn) in interim and final payments following the resolution of the Financial Conduct Authority’s test case on Covid-19 business interruption claims.

Second BI test case opens in Australia’s Federal Court

A second test case into Covid-19-related business interruption (BI) claims in Australia has commenced in the country’s Federal Court, which will scrutinise the policies of nine small businesses written by five insurers.

Another appeals court rules in Cincinnati’s favour in Covid-19 BI case

In one of the first rulings on appeal in a US Covid-19 business interruption case, the Eleventh Circuit has affirmed Cincinnati Financial’s win over a dental practice in Georgia.

Chubb sued by Paramount for failing to pay Mission: Impossible 7 Covid claims

Paramount Pictures Corporation has sued Chubb subsidiary Federal Insurance Company after it failed to pay Covid-19-related claims stemming from the production of the Tom Cruise blockbuster Mission: Impossible 7.

Hiscox sues Irish watchdog on BI complaint ruling

London-listed Hiscox has issued legal proceedings against the Irish financial services watchdog after a customer complaint concerning Covid-19 insurance losses made against the insurer was upheld.

Second BI test case in Australia delayed on data access concerns

The Federal Court of Australia has delayed the start of the country’s second test case into pandemic-related business interruption claims by one week to provide policyholders with more time to access government data and expert evidence concerning Covid-19 outbreaks.

Analysts: More price increases will be needed at Lloyd’s

More price increases will be needed to offset Covid-19 losses absorbed by the Lloyd’s market to date, according to analysis by Insurance DataLab.

Tribe’s potential Covid recovery limited to $2mn in BI suit against FM Global

A Connecticut superior court judge has ruled that the Mashantucket Pequot Tribal Nation, which operates the Foxwoods Resort Casino, is limited to up to $2mn in potential pay out for Covid-19 losses under its FM Global policy that has $1.6bn of all risks coverage.

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