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Tuesday, January 26, 2021
INTRODUCTION
Two recent Washington state trial court decisions provide policyholders hope that they may be able to obtain insurance coverage for business interruption losses arising from Governor Inslee’s COVID-19 “shut down” orders. This alert will provide background regarding COVID-19 coverage cases nationally and a discussion of these recent Washington court decisions.
THE NATIONAL LANDSCAPE
Policyholders in the United States have filed almost 1,500 cases seeking insurance coverage for COVID-19 losses. Insurers commonly respond by filing early motions to dismiss for “failure to state a claim.” Courts in approximately 30 states have issued decisions on such early motions, with:
Insurers prevailing approximately 85 percent of the time, resulting in over 100 dismissals;