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Is there a fix for COVID business interruption and event cancellations losses on the horizon?

Tony Lathrop
MVA Litigation Blog
August 2020

MVA Litigation Member Tony Lathrop‘s MVA Litigation Blog article titled, “Is There a Fix for COVID Business Interruption and Event Cancellations Losses on the Horizon?” was published on August 17.

The article

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 in as many as 30 million claims by small business owners. One of the consequences of a record hit to the economy and record business losses is mounting litigation. According to tracking data, more than 700 business interruption insurance lawsuits have been filed regarding COVID-19 related business losses – more than five times the number of cases filed after each of Hurricanes Ike, Irma and Harvey and Superstorm Sandy. Companies need relief, and the private and public sectors continue to introduce potential strategies for mitigating the impact of COVID-19 and preparing for the unfortunate possibility of future pandemics. We previously discussed the federal Pandemic Risk Insurance Act of 2020 that was introduced in May 2020. We hit the highlights below regarding several additional measures that have been implemented or proposed.

To view the complete blog article, please click here.