Insurers Argue Against Business Interruption Lawsuits

With COVID-related shutdown orders affecting businesses across the country, insurers are now fighting against consolidation of more than 100 federal lawsuits arguing they should receive business interruption coverage.

So far, the insurance industry has filed more than 24 briefs opposing multidistrict litigation (MDL), arguing that such a move could prolong the litigation.

“There is no reason for a single federal court in one part of the country to interfere with the process of policy interpretation here on a state-by-state basis especially given the lack of uniformity among the policies in question and the differing circumstances surrounding each policyholder’s loss,” read one brief filed by King & Spalding, which represents more than 50 businesses suing Society Insurance for denying COVID-19 claims.

Businesses are being represented by attorneys from Burns Bowen Bair LLP, Levin Sedran & Berman and Golomb & Honik, DiCello Levitt Gutzler, The Lanier Law Firm, and Daniels & Tredennick.

Read more at Insurance Business.