The contract is specifically written to provide coverage when “property damage” occurs. The fact that the virus exclusion is not on the policy form does not change the issue on property damage. I understand the clients frustration with the financial impact on their business, but you can not change how the wording in a contract applies. Interesting how they went right to Federal court and seek class action status.
Even if they could prove the presence of a virus causes “damage”, a virus can be eliminated by cleaning the premises. A few hours and you’re back in business. Once the premises is cleaned, there would be no further claim even if it remained closed due to government order because the physical damage component would have been eliminated so the most they get is cleaning costs and 24hrs income continuation and that’s worst-case-scenario.
Not to mention, the plaintiff would have to prove the presence of the virus on premises in the first place. How exactly do they do that? They would also have to show that the presence of the virus is the proximate cause of the business closure. That is clearly not the case since businesses are closed where there have been zero cases of the virus. A closure by government order in anticipation of something happening is not going to trigger coverage.
The best way to tackle this is thru a state/federal government mandate to void the insurances claim of no coverage. The process is already underway New York in its declaration of emergency specifically added the term of damage to property. Paving the way for a future lawsuit on claims.
The contract is specifically written to provide coverage when “property damage” occurs. The fact that the virus exclusion is not on the policy form does not change the issue on property damage. I understand the clients frustration with the financial impact on their business, but you can not change how the wording in a contract applies. Interesting how they went right to Federal court and seek class action status.
Even if they could prove the presence of a virus causes “damage”, a virus can be eliminated by cleaning the premises. A few hours and you’re back in business. Once the premises is cleaned, there would be no further claim even if it remained closed due to government order because the physical damage component would have been eliminated so the most they get is cleaning costs and 24hrs income continuation and that’s worst-case-scenario.
Not to mention, the plaintiff would have to prove the presence of the virus on premises in the first place. How exactly do they do that? They would also have to show that the presence of the virus is the proximate cause of the business closure. That is clearly not the case since businesses are closed where there have been zero cases of the virus. A closure by government order in anticipation of something happening is not going to trigger coverage.
The best way to tackle this is thru a state/federal government mandate to void the insurances claim of no coverage. The process is already underway New York in its declaration of emergency specifically added the term of damage to property. Paving the way for a future lawsuit on claims.