I don’t think the broad public understands the damage that will occur to our economy and way of life if courts determine that business income losses from the pandemic are covered. There may be a policy or two out there with poor language that results in coverage, but most all policies are very clear (in my mind) that coverage does not exist. If courts say otherwise, there is simply not enough capital available in he industry to pay all the losses. The industry will be wiped out and we will be left without an efficient way to transfer and manage risk. So no mortgages, no auto insurance coverage, no business liability coverage, etc. Only way for economy to continue will be massive federal government bailouts. The debt we put on future generations may be unmanageable. So, once again, the attorneys are going to make all the money.
Yes, the argument for “direct physical loss” seems like a stretch. I would think the companies could argue that Covid “droplets on solid surfaces” could be removed through cleaning/sanitization and no actual physical damage occurred. The loss in revenue, in part, was due to the elimination of fans so they don’t spread it among themselves.
The general public do not understand the consequences to lawsuits and legislative inquiries into forcing insurance companies to pay BI losses do to this pandemic. Whether insurance companies had enough capital to pay them, and if they do that they get a government bailout, future insurance premiums (if they survive) would be unthinkable. It is unfortunate how politicians have spun their inability to manage this pandemic towards vilifying insurance companies as to why businesses are failing. They have done it for years, they have vilified health insurance companies as the problem of our healthcare system, but never associate any blame to the cost of our healthcare system is created.
I think the real issues are why both our health care authorities and the Baseball team owners who also have access to expert advice have discharged their managerial duties to protect their clients, their players and their franchises if they have not clearly inquired of public health care authorities if restrictions could be avoided through stringent real time testing – more than 30 real time tests have been approved by the FDA since the middle of the summer. This is an even greater issue for government authorities who have through their failure to employ a cohesive strategy of as many real time tests as possible to prevent spread of the disease; which is much less restrictive and threatening to the public health than the alternatives. Business Interruption insurance is NOT coverage for the failure to execute reasonable measures to prevent harm; but we will see how the courts interpret things – it could be that insurers having perceived deep pockets may be found liable anyway….
I don’t think the broad public understands the damage that will occur to our economy and way of life if courts determine that business income losses from the pandemic are covered. There may be a policy or two out there with poor language that results in coverage, but most all policies are very clear (in my mind) that coverage does not exist. If courts say otherwise, there is simply not enough capital available in he industry to pay all the losses. The industry will be wiped out and we will be left without an efficient way to transfer and manage risk. So no mortgages, no auto insurance coverage, no business liability coverage, etc. Only way for economy to continue will be massive federal government bailouts. The debt we put on future generations may be unmanageable. So, once again, the attorneys are going to make all the money.
Hear hear. Well said. Don’t think you’ll get too many people to disagree with you on this one.
Yes, the argument for “direct physical loss” seems like a stretch. I would think the companies could argue that Covid “droplets on solid surfaces” could be removed through cleaning/sanitization and no actual physical damage occurred. The loss in revenue, in part, was due to the elimination of fans so they don’t spread it among themselves.
The general public do not understand the consequences to lawsuits and legislative inquiries into forcing insurance companies to pay BI losses do to this pandemic. Whether insurance companies had enough capital to pay them, and if they do that they get a government bailout, future insurance premiums (if they survive) would be unthinkable. It is unfortunate how politicians have spun their inability to manage this pandemic towards vilifying insurance companies as to why businesses are failing. They have done it for years, they have vilified health insurance companies as the problem of our healthcare system, but never associate any blame to the cost of our healthcare system is created.
I think the real issues are why both our health care authorities and the Baseball team owners who also have access to expert advice have discharged their managerial duties to protect their clients, their players and their franchises if they have not clearly inquired of public health care authorities if restrictions could be avoided through stringent real time testing – more than 30 real time tests have been approved by the FDA since the middle of the summer. This is an even greater issue for government authorities who have through their failure to employ a cohesive strategy of as many real time tests as possible to prevent spread of the disease; which is much less restrictive and threatening to the public health than the alternatives. Business Interruption insurance is NOT coverage for the failure to execute reasonable measures to prevent harm; but we will see how the courts interpret things – it could be that insurers having perceived deep pockets may be found liable anyway….