Subrogating Against Government Authorities For COVID-19 Losses

Introduction

The worldwide number of COVID-19 cases is growing daily, with nearly two million currently active cases.¹ Of those cases, approximately 27,000 are within Canada.² As the pandemic continues worldwide, more claims have and will be made to insurers regarding COVID-19 losses. Although some losses will be denied coverage, there will likely be indemnification in some circumstances.

Indemnification of COVID-19 claims raises the issue as to an insurer's ability to subrogate against government authorities for their policies and responses to the pandemic. There may also be claims against other businesses which caused or contributed to the insured's losses, such as airlines operating without proper screening or manufacturers of defective products.