Businesses that lost employees to illness, or were forced by state governments to close their doors during the COVID-19 pandemic thought their insurance payouts would cushion the financial blow. But, for nearly two years, business policyholders and their insurers have been embroiled in legal battles. In an interview with CFO magazine, Partner Peter A. Halprin discussed the pandemic insurance litigation.
“For the most part, insurers have rejected business interruption claims [related to the pandemic] and forced their policyholders to sue to obtain coverage,” says Halprin.
“If nothing else, the recent litigation and questions surrounding business interruption insurance provide a wake-up call for insurers and businesses alike,” Halprin says. “Policies need to be clearer and less complicated. There is an obligation to make sure this product is user-friendly.”
Read the full article here.