Every company impacted in any significant way by coronavirus will be studying their insurance policies to determine whether related losses may be covered.
Each day new Covid-19 headlines emerge about the many industries facing steep losses from a variety of impacts, including "closed plants, employees stuck at home and undelivered goods and supplies."
The coverage dispute between insurers and policyholders is just getting started.
Contact me to discuss how Alvarez & Marsal can help.
Many U.S. companies think their insurance policies cover lost revenue from the coronavirus outbreak. But that may be up to the courts to decide. Corporations already have had claims rejected for payments under a popular type of coverage called business-interruption insurance, according to industry brokers and lawyers. In the rejections, insurers cited various terms and conditions, signaling that companies’ battle for recoveries will be slugged out almost policy by policy based on contractual language. “There is no guesswork here: There will be insurance-coverage disputes,” said Kirk Pasich, an insurance-recovery attorney in Los Angeles.
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