Rulings in Business Interruption Litigation During the COVID-19 Pandemic

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With the onset of the coronavirus pandemic and the various statewide “shelter-in-place” orders issued across the nation, many businesses have been faced with restricted operations due to social distancing concerns, resulting in reduced business volume or sometimes even total closure. Many of these businesses sought relief from their insurers for loss of revenue and other business losses. Most policyholders claimed that they were entitled to coverage under policies that included “business interruption” coverage parts or “civil authority” coverage parts, arguing that the government shelter-in-place orders and the resulting business limitations triggered coverage under both coverage parts. Other policyholders made claims under their “all-risk” policies which, as their name suggests, are designed to provide coverage from all losses except for those that are specifically excluded by the policy.

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