Insurer to Appeal Restaurants’ Win in North Carolina COVID Business Interruption Case
October 23, 2020

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A bad decision from a local trial court judge running for re-election. If you read the decision, you can see commentary from the judge that strongly indicates he doesn’t understand what he’s reading.
https://media-exp1.licdn.com/dms/document/C4D1FAQGZg4WH1_dAww/feedshare-document-pdf-analyzed/0?e=1603562400&v=beta&t=qDKeTvcVetIoE4oVLA1mU-siYSoffr9uBZUdxY1Kzt8
Hudson has always been an activist judge in a liberal town. Durham, Chapel Hill, Charlotte have always been blueberry in a big tomato soup of a state , if you will.
All alleged political reasonings aside, the absence of the virus exclusion and ambiguity favoring the policyholder is the basis of this ruling. Insurers that did not include the exclusion will end up paying.
Well, I am estimating losses to be in the one trillion range. as at least 99% of the restaurants in our country were forced to reduce business by around 80% for a period of at least 9 months. With 335 million people in this country who eat every day, assuming 1 meal from fast food or better each day (at 12.00 per meal) would probably run about 4 billion X .75 = 3 billion X about 270 days (9 months) = a loss of about 810 billion (most likely more). Assuming that the carriers writing insurance on Restaurants can’t weather that load, they will all be gone pretty quickly. Something like this is not an insurable event by most standards. Most policy wording states “direct physical loss” has to occur before your business interruption insurance responds. This is an unfortunate event. The fed is providing stimulus packages to keep most businesses afloat. lets hope we can continue helping everyone through it.