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COVID-19 Physically Present is Sufficient in Business Interruption Suit


Allegations That COVID-19 Was Physically Present and Altered Property are Sufficient to Sustain COVID-19 Business Interruption Suit
Thursday, May 6, 2021
On Wednesday, a federal judge in Texas denied Factory Mutual’s Rule 12(c) motion for judgment on the pleadings, finding that the plaintiffs adequately alleged that the presence of COVID-19 on their property caused covered physical loss or damage in the case of 
Cinemark Holdings, Inc. v. Factory Mutual Insurance Co., No. 4:21-CV-00011 (E.D. Tex. May 5, 2021). This is the third COVID-19-related business interruption decision from Judge Amos Mazzant since March, but the first in favor of a policyholder. Taken together, the three decisions have two key takeaways and provide a roadmap for policyholders in all jurisdictions. ....

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Texas Winter Storms: Evaluating Business Interruption Claims Following a Large-Scale Disaster | Pillsbury Winthrop Shaw Pittman LLP


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Responding to the Texas Winter Storm Crisis: Issue 2 Winter storms and wide-area events like the one that recently devastated Texas leave behind challenging questions about business interruption insurance coverage.
TAKEAWAYS
Property insurance policies with business interruption coverage and case law require close inspection to determine the proper method for measuring business interruption claims following wide-area impact catastrophes.
Quantifying a policyholder’s business interruption loss is a contentious issue in the wake of large scale disasters.
The methodology for calculating business interruption losses varies by jurisdiction and can depend on specific policy language. ....

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