Cygal Quoted as Businesses Battle for Coronavirus-Related Insurance Coverage
Chicago Tribune
Insurance & Reinsurance Practice Co-Leader Everett J. Cygal discussed how insurance companies are denying coverage to business owners impacted by the coronavirus pandemic.
Prior to the pandemic, many insurance carriers excluded coverage for viruses.
As business owners begin to take some insurers to court, arguing that the presence of the coronavirus and the state-mandated business closures constitute property damage and physical loss of use. Hoping to trigger some sort of coverage.
Everett said, “as more claims come in, premiums will go up.” If courts side with policyholders, property insurance rates are likely to increase. He added, “It’s inevitable.”
Bills proposed in several states, would require carriers to cover business interruption claims related to COVID-19. Everett said such legislation could be challenged on constitutional grounds because the Contracts Clause in the US Constitution says a state can’t retroactively change contracts.
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