Businesses are demanding insurance coverage for lost income due to the coronavirus -- and a judge's recent decision may make it easier for businesses to get that money. This is the first time a judge has decided to let businesses go ahead with their case.
A group of Kansas and Missouri hair salon and restaurant owners can proceed with a lawsuit trying to make their insurance company pay for the income they missed out on during COVID-19 government shutdown orders, a judge ruled Wednesday.
So does it kick in when businesses close their doors under government orders to slow the spread of an invisible, communicable virus? And does it apply when many policies might contain coverage exclusions related to fallout from a virus? “ ‘COVID-19 allegedly attached to and deprived Plaintiffs of their property, making it ‘unsafe and unusable, resulting in direct physical loss to the premises and property.’ ’ ”
“It’s a huge decision for policyholders to use as persuasive authority in other cases,” said Kim Winter, a partner at Lathrop GPM, where she represents policyholders in coverage disputes.
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