A recent S&P Global Market Intelligence article on insurance coverage for business interruption claims for coronavirus, relies on Callahan & Blaine Senior Partner, Edward Susolik for his expert advice on the subject.
The article on coronavirus-related business interruption claims disputes the notion that many insurers will have a good case to decline business interruption claims. It states:
Edward Susolik, a senior trial attorney at California-based Callahan & Blaine, which specializes in litigating insurance bad faith and complex business cases, gave the example of a landlord who had a tenant operating a meth lab. Damage to the property, if any, would be minimal, but lingering fumes could leave the property unrentable for weeks or months. Courts have found this to be a valid business interruption claim, the attorney said.
Susolik also pointed out that many insurance policies cover shutdowns imposed by governments, which would mean that nonessential businesses ordered to close should be covered regardless of any property damage requirements or virus exclusions.
Mr. Susolik goes on to advise that policy holders closely examine their policies. For the most part, the insurance industry tries to standardize policy language by including endorsement forms from Insurance Services Office Inc., or ISO. The language in these forms is typically drafted and vetted by industry experts and helps provide uniformity when the courts interpret policies.
“A lot of these policies have virus exclusions, and a lot of them don’t,” Susolik said. “A lot of these policies have additional coverages, what’s called dependent property coverages, a lot of them don’t.”
Business owners and attorneys may also be interested in Callahan & Blaine’s article on the various types of insurance which may cover business interruption due to the coronavirus.