In case you missed yesterday’s post and video, Breaking News—President Trump Demands Insurance Companies to Pay Up! Business Interruption Coverage, the trend is clear in the state and federal political arena—insurance companies should Pay Up!
When the President of the United States goes out of his way to change the topic of a question to specifically discuss business interruption insurance and suggest that it is only fair that insurance companies pay for lost income because the policies do not have an exclusion for a pandemic, it is obvious that other leaders have discussed this insurance coverage issue with him.
Other state politicians are actually calling the denials of these clams “unfair” practices by the insurance industry. An example is in a political email from a conservative Republican Texas politician:
This week, I sent a letter to the Texas Department of Insurance regarding the unfair denial of claims for small businesses with business interruption insurance. Many policyholders who have faithfully paid their business interruption insurance premiums for just such a time as this are being wrongfully denied. You can read my letter below.
The trend is that there is a trickle of lawsuits being filed as noted in, Coronavirus Insurance Coverage Update April 8—Pennsylvania Files Proposed Legislation, An Official “Trickle” of Lawsuits is Filed and Is There A Test That Finds Covid-19 on Property?
I think it is time to declare that an official “flood of loss notices” are being made to insurance agents and insurance companies. One insurance defense attorney told me that his firm has over 100 denied cases that they are reviewing and expecting a flood of lawsuits. That lawsuit “trickle” could soon be a flow. I can also say that the political heat is now officially “warm” and appears to be getting warmer for the insurance industry to address this situation.
Will the insurance industry publicly say that the President of the United States does not know how to read an insurance contract? Will they say he is ‘stupid, stupid, stupid?’1 Everybody knows how President Trump responds to people that say he is wrong and stupid.
What am I telling business policyholders to do? Follow the obligations portion of your policy and report your loss. I would suggest that you do so in writing. Some agents and insurance coverage advisers have previously written that reporting an uncovered loss is still required under the policy. So, do what your policy requires and file the notice of loss.
Thought For The Day
No dream is too big. No challenge is too great. Nothing we want for our future is beyond our reach.
1 The Rainmaker. Directed by Francis Ford Coppola, Paramount Pictures, 1997. YouTube clip, uploaded by Bill Pascoe, 12 Jan 2010.