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Is There a Fix for COVID Business Interruption and Event Cancellations Losses on the Horizon?

The losses sustained by American businesses in the wake of the COVID-19 pandemic will be measured at a level that may never be seen again in our lifetime. On July 30th, the U.S. Bureau of Economic Analysis issued an advance estimate stating that the nation’s real gross domestic product (GDP) decreased at an annual rate of 32.9% in Q2 2020, which reportedly is the worst recorded drop in American history. It was estimated early on that “business interruption losses from the coronavirus just for small businesses in the U.S. could be between $220-$383 billion per month,” resulting ...

Pandemic Risk Insurance Act of 2020 Introduced in Congress – A Federal Backstop for Business Interruption and Event Cancellation Losses

After months of discussion and drafting, H.R.7011, the Pandemic Risk Insurance Act of 2020 (PRIA) was introduced by Representative Carolyn Maloney and twenty co-sponsors on May 26, 2020. If passed as currently drafted, the Act would mandate that insurance companies offering business interruption insurance policies must cover losses incurred due to pandemics and it would establish a Pandemic Risk Reinsurance Program (PRRP) within the Department of the Treasury under which private insurance companies and the federal government would share the responsibility to pay claims for ...

North Carolina Considering COVID-19 Workers’ Compensation Expansion for Frontline and Essential Workers

For the last two months, the doors of millions of businesses and homes have been shuttered due to government mandated stay at home orders. Through it all, the individuals who have served on the front lines and in essential businesses have been required to risk exposure to the novel coronavirus (COVID-19) to continue to serve and keep those businesses running. Several North Carolina Representatives recently introduced H.B. 1057 - WC/COVID-19 Front Line Coverage/Funds, a bill that would amend North Carolina’s workers' compensation law by creating a rebuttable presumption that ...

COVID-19 Business Interruption Insurance Litigation Proliferates

A few weeks ago we were discussing what was believed to be the first COVID-19 lawsuit related to business interruption insurance and a handful of state legislative efforts to redefine the scope of coverage for businesses impacted by COVID-19. Now, dozens of lawsuits have been filed across the nation, including several class actions, and legislation is circulating at the federal (and international) level proposing to provide a backstop to private insurers who pay out to policy holders. The impact of COVID-19 shutdowns on businesses is being felt wide and deep. The Risk & Insurance ...

Mandated Coverage and Public-Private Risk Sharing Initiatives Under Consideration for COVID-19 Related Business Interruption Losses

In just a few weeks, we have gone from discussing what was believed to be the first COVID-19 lawsuit related to business interruption insurance and a handful of state legislative efforts to redefine the scope of coverage for businesses impacted by COVID-19 to dozens of lawsuits filed across the nation, including several class actions, and legislation circulating at the federal (and international) level proposing to provide a backstop to private insurers who pay out to policy holders. The impact of COVID-19 shutdowns on businesses is being felt wide and deep. The Risk & Insurance ...

BEWARE COMPROMISED BUSINESS EMAIL . . . AND THE LITIGATION THAT FOLLOWS

*By Chris Tomlinson, Bill Butler, & Jim McLoughlin.  Businesses are facing this system hack with ever-increasing frequency:  An accounts payable employee receives new or updated payment instructions from a vendor via email.  The email appears to be from a familiar counterpart at the vendor; it contains accurate details specific to a current transaction; the new bank is well known; and the new instructions have the vendor’s name, or a version of it, as the beneficiary. The accounts payable employee executes the electronic transfer payment consistent with the wiring instructions.  ...

Retooling Your Business for COVID-19: Product Liability Immunity & Insurance for Manufacturing Pandemic Products

One thing, among many, that enduring the COVID-19 crisis is reminding us of is that the resilience of the human spirit is remarkable. Amidst calls for more personal protective equipment for the dedicated healthcare workers on the front lines and more ventilators for vulnerable patients fighting for their lives, company after company (and individuals) have responded by retooling their operations to manufacture the items needed to support the herculean effort to treat those infected and to stay ahead of and flatten the curve of this pandemic. The U.S. Food and Drug Administration ...

State Legislators Seek to “Rewrite” Insurance Policies, Requiring Coverage of COVID-19 Business Interruption Losses

The Novel Coronavirus (COVID-19) pandemic has elicited extraordinary suppression and mitigation measures from all levels of government in the U.S. and around the world. It is difficult to fathom the extent to which the economy, global and domestic travel, and life as we knew it have been disrupted in the span of only a few weeks. Lawmakers have been in the difficult position of having to weigh the public health implications of their policy decisions against the economic impact on businesses and individuals. At all levels, our governments have been taking steps to address mitigation of ...

28 U.S.C § 1782(a) – Obtaining Information in Aid of International Private Arbitration from U.S. Federal Courts: The Debate Shifts

In a noteworthy endorsement of international arbitration March 30, 2020, the U.S. Court of Appeals for the Fourth Circuit issued what may be the second watershed decision within six months in the use of 28 U.S.C. § 1782, “Assistance to foreign and international tribunals and to litigants before such tribunals”. The Fourth Circuit panel reversed the district court to rule that section 1782(a) may be employed to obtain testimony and other evidence in aid of private arbitration held outside the United States.[i]

Operating A Business Under North Carolina’s COVID-19 “Stay-At-Home” Order: Essential Business Designation & Reentry Certification

At 5:00 p.m. on Monday, March 30, 2020, all citizens and businesses of North Carolina will join hundreds of millions of others in the United States that are subject to state or local government issued “stay-at-home” orders. On March 27, 2020, North Carolina Governor Roy Cooper issued a statewide stay-at-home order via Executive Order 121, “Stay-At-Home Order and Strategic Directions for North Carolina in Response to Increasing COVID-19 Cases” (Stay-At-Home Order”). The Governor stated several findings as the basis for the Order, including that 763 COVID-19 cases ...

About MVA Litigation Blog

Companies are operating in an increasingly globalized and regulated business environment, facing ever-changing and complicated litigation and regulatory challenges. The Moore & Van Allen Litigation Blog provides cutting-edge information regarding developments in federal, North Carolina State, and international litigation, as well as in arbitration, regulatory enforcement, and related business practices. 

Read about our practice and meet the MVA Litigation Team.

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