COVID-19 and Business Interruption Coverage: Pending Legislation

Photo of "COVID-19" spelled in scrabble tiles with illustrated viruses floating above

On March 23, we wrote about potential insurance claims arising from COVID-19 shutdowns and disruptions that businesses could assert under the business interruption coverage in their property damage insurance. Since then, bills have been filed in several state legislatures – including Ohio – that seek to ensure that this coverage exists.

Frustration of Purpose And Excused Contractual Performance After A Government Shut Down

Photo of "COVID-19" spelled in scrabble tiles with illustrated viruses floating above

By: William K. Flynn State and local governments are taking aggressive actions to contain the spread of the COVID-19 virus, including official and unofficial quarantines, “social distancing,” stay at home requirements, and cancellation of public events. I wrote the other day addressing the potential implications of a pandemic relative to negotiated force majeure provisions commonly …Read More

A Message from Marshall K. Dosker, President, Strauss Troy

To all clients and friends of Strauss Troy:

We hope that you remain well during these challenging times. Like you, we at Strauss Troy have been busy preparing and planning for all aspects of this unprecedented event.

Business Interruption Insurance Claims Arising from COVID-19

Photo of "COVID-19" spelled in scrabble tiles with illustrated viruses floating above

Most businesses have business interruption insurance that is one of the coverages provided in property damage policies. Business interruption coverage may or may not provide reimbursement for some of the losses sustained by businesses as a result of the coronavirus shutdown. This will depend on the exact language of the policy and the exact circumstances causing the business interruption.

Force Majeure: Will COVID-19 excuse performance of your contract?

Photo of "COVID-19" spelled in scrabble tiles with illustrated viruses floating above

Added to to stressors faced by business owners or operators during this pandemic is whether they will be able to meet contractual commitments or expect return performance by counter parties.  Looking past the current disruption in every corner of the economy, businesses are going to increasingly confront questions about force majeure and related contract concepts of impracticability of performance or frustration of purpose.