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MVA Litigation Blog: A Place for Insurance in a Global Pandemic: How Do Event Cancellation & Business Interruption Policies Apply to COVID-19?

March 2020

Charlotte Litigation Member Tony Lathrop‘s MVA Litigation Blog article titled, “A Place for Insurance in a Global Pandemic: How Do Event Cancellation & Business Interruption Policies Apply to COVID-19?” was published on March 25.

The article

It is an understatement to say that the foothold the 2019 Novel Coronavirus (COVID-19) has gained in the U.S. and resulting government mandates have developed at a rapid pace. Two weeks ago, companies were open for business, but were well advised to consider cancelling planned events and reviewing their contracts and insurance policies to determine coverage for potential losses. Given the travel advisories issued by the government and trepidation of individuals to travel or gather in the midst of the rising number of COVID-19 cases, cancellation of a major event may have been the prudent course. In a matter of days, we saw professional sports leagues postpone or cancel their seasons, and government (federal, state, and local) recommendations on limiting gatherings quickly scaled down to no more than 10 individuals. Schools and non-essential businesses have been closed in many states, restaurants and bars in many states have been ordered to close in-dining services and only offer drive-thru or delivery services. As of March 24th, it was reported that over 40% of the U.S. population was living under state or local government issued stay-at-home or shelter-in-place orders, requiring that individuals remain at home except for essential activities like grocery shopping or performing work duties in essential industries. It is now a given that businesses have been severely disrupted, and events must be cancelled or moved to an online format.

To view the complete blog article, please click here.