Micah Skidmore in Law360: Fla. Sports Bar's COVID-19 Insurance Claim Should Proceed

06/04/2020

In the short space of two months, thousands of corporate policyholders across the country have gone from pursuing normal, prosperous business operations to substantially reduced or suspended business activity in response to state and local quarantine orders to, now, conflicts with insurance carriers over coverage for extensive business interruption losses.

Dozens of cases have been filed in venues across the country by corporate insureds seeking to recover the same thing — millions of dollars in lost revenue and extra expense incurred as the current public health crisis has denied businesses their employees, essential supplies and consumers.

In one pending case, Prime Time Sports Grill Inc. v. Certain Underwriters at Lloyd's of London, the insurer recently moved to dismiss the policyholder's claim for business interruption loss in litigation pending in the U.S. District Court for the Middle District of Florida. Underwriters' dismissal brief argues primarily against the policyholder's allegations that its restaurant/bar sustained physical loss of or damage to insured property.

Excerpted from Law360. To read the full article, click here. (Subscription required)

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