A improvement within the case legislation would possibly result in a gap for enterprise interruption protection for COVID-related loss for Louisiana properties. A Connecticut case (decoding a nationwide coverage with a number of state endorsements) flagged the problem that Louisiana coverage endorsements typically carve out the virus exclusion that in any other case exists in enterprise interruption insurance policies. See New Castles Lodge, LLC v. Zurich Am. Ins. Co., No. X07-HHD-CV-21-6142969-S, Superior Courtroom, Complicated Litigation Docket (Conn. Sept. 7, 2021). The carve-out exists throughout completely different carriers’ insurance policies, so it’s probably pretty frequent.
The virus exclusion for enterprise interruption insurance policies has been the most important hurdle to protection for policyholders. If a coverage bars protection primarily based on the presence of a virus, there may be little argument that protection might apply to COVID-related enterprise earnings loss. However, if a coverage doesn’t have the virus exclusion, the query of protection has been a more in-depth name.
With out the virus exclusion, whether or not protection is on the market turns largely on whether or not the presence of the virus that causes COVID-19 is deemed “bodily loss or harm.” Courts have had blended solutions to this query, leading to case-by-case variations and fact-specific inquiries. Any companies with vital enterprise earnings loss for Louisiana properties might discover it worthwhile to revisit their enterprise interruption insurance policies. For additional dialogue on the doubtless out there protection and the right way to protect that protection, please reference our earlier article – Don’t Miss Out on Potential Insurance Coverage for Business Loss from COVID-19.