COVID-19 Insurance Claim Denial Lawsuit Will Proceed: Judge
At least one insurer will have to defend its denial virus-related business interruption insurance losses after a California federal judge ruled the high-profile case can proceed.
U.S. District Judge Cormac Joseph Carney ruled in favor of Sunstone Hotel Investors in denying a motion by Endurance American Specialty Insurance Co. to toss out the $40 million suit. The judge rejected the claim that the investors were required to meet a $100,000 deductible for cleanup costs before tapping into business interruption coverage.
So far, insurers have been mostly successful at fending off business interruption lawsuits stemming from the COVID-19 pandemic. Disputes are generally focused on whether the virus is a valid exclusion under policies.