Since the COVID-19 crisis began, White and Williams attorney Randy Maniloff has been posting regular updates on his Coverage Opinions website. In an April 5 post he listed four takeaways on the continuing debate over business interruption coverage.
- There have been bad faith allegations against insurers who deny coverage for claims without an investigation. Even if coverage is excluded, insurers owe their customers a proper explanation.
- Claims have been made for coverage under the "order of civil authority" extension. These claims are based on closure of public space due to a covered peril; there is no need to prove physical damage to an insured premises.
- There are limitations to civil authority coverage, in time and space. The time limit is more important; after a waiting period coverage usually lasts for four weeks or 30 days. The closure must usually be within one mile or five miles of the insured's premises but can be extended up to 100 miles.
- Restaurants and bars are the chief campaigners for finding coverage.
We can expect to see continued focus on this issue.