Happy Thanksgiving!

Claims Journal published an article earlier this week, The Key to Winning COVID Business-Interruption Claims: Say the Virus is Present, quoting me from last Friday’s Forum at 2. I discussed the Chloe’s Café brief we filed in California,1 and provided a copy to the audience. The press and others must have watched the episode, and they noted:
Continue Reading Friday Forum at 2 Watched by Insurance Media Regarding Business Interruption and Civil Authority Claims

The loss of market exclusion excludes from coverage any lost profits due to the business’s market disappearing. The loss of market could be due to economic decline, competition, or shifts in demand attributable to a dramatic occurrence. The question, as usual, is whether that exclusion applies to the claims of lost profit by policyholders that follow a covered peril.
Continue Reading Understand Business Interruption—Do Not Let the Insurance Company Deny Your Income Claim on Bogus Loss of Market Exclusions

Businesses forced closed by COVID-19 and denied coverage by their insurers received a legal boost this month. In a recent North Carolina ruling, the court held that a commonly worded business interruption policy covered losses arising from closures mandated by COVID-19.
Continue Reading Court Finds Coverage for Restaurants’ COVID-19 Business Interruption Claims

The First Party Claims Conference is going virtual this year. While trying to think of a pithy and timely topic to teach, I noticed that insurance defense attorney Shannon O’Malley of Zelle LLP, had just written an article, Commercial Property Insurance Coverage and Coronavirus.1 Since the article did not indicate that businesses being shut down by COVID-19 would have an easy time collecting under their business interruption coverages, including civil authority coverage, Shannon received much criticism from policyholder attorneys for her views.
Continue Reading Do Not Miss Analysis of Civil Authority Coverage at the First Party Claims Conference

As the year goes on, state and federal trial courts will continue to tackle legal issues brought on by COVID-19. One recent decision comes from the Middle District of Florida, which recently granted an insurance carrier’s Motion to Dismiss a dental practice’s Complaint brought under the business income and civil authority provisions of the policy.
Continue Reading Trial Court Grants Motion to Dismiss Complaint Based on Virus Exclusion in Policy

Tuesday at 2 With Chip is Wednesday at 2 today because of a remote and successful GAPIA seminar yesterday. Today, I will go over three topics:

  1. The New Colorado Law Regarding Cooperation Requirements Following Loss
  2. Understanding Business Interruption Concepts
  3. Adjusting Commercial Claims Involving Leases
    Continue Reading Chip At 2 Today—-New Colorado Cooperation Law, Understanding Business Interruption Concepts, and Adjusting the Lease Exposures

We have made it to the last of the Six P’s and Six E’s, if you have been following this series of business interruption insurance. “Enough” is the last element of these. This is the concept that the policyholder must carry “enough“ insurance to collect for the loss in full. The essence of this is:

[N]ot the obvious fact that the face amount of the policy must be as great as the amount of the loss if the Insured is to collect fully. Rather it is the provision found in most Business Interruption policy forms called a Coinsurance Clause, which penalizes the Insured if the face amount of the policy does not equal an agreed percentage of the total amount at risk-the amount of money that the Earnings Stream would have produced in a period of twelve months if no damage had been suffered-referred to as the Business Interruption Value.1


Continue Reading The Last “E”—Did the Policyholder Purchase “Enough” Business Interruption Insurance to Avoid Co-Insurance or Contribution?

California Congressman Mike Thompson has filed a bill to help some business owners with business income policies collect benefits for Covid-19-related losses from their insurers.1 Here is a quote from Representative Thompson’s press release explaining his reasons for filing this federal legislation:
Continue Reading Will Recently Filed Federal Legislation for the Covid Closed Business Policyholder Have A Possibility Of Passage?

“Extra” is the E that largely stands for the concept of expediting costs which are incurred to reduce the ultimate loss. “These are out-of-the-ordinary expenses.”1 They are differentiated from the normal expenses to repair and replace damaged property covered under the property insurance policy. These expediting costs usually fall into three categories:

  1. Those that speed up the return to normal operations;
  2. Those that continue operations during the period of interruption but at a higher than normal cost;
  3. Those incurred, after operations are resumed, to refill inventory.


Continue Reading What Is the “Extra” E and Why It May Be The Most Important “E” of “The Six E’s” of Business Interruption Insurance?

The first two E’s of business interruption insurance claim theory were discussed in, The First Two Elements of The Six E’s of Business Interruption Coverage—Extent and Experience. Today, we are going to discuss the elements which are Excluded and Effort. I know I am skipping “Extra” but Extra deserves extra discussion.
Continue Reading The Excluded and Effort Elements of Business Interruption Insurance Claims Theory