In 2021, extensive litigation will continue across the country
regarding whether insurance coverage exists for losses that
businesses have experienced as a result of pandemic-related
closures.
Approximately 1,500 coverage lawsuits are pending, with more
being filed each day. Thus far, the vast majority of
courts—particularly federal trial courts—have dismissed
pandemic-related business interruption coverage lawsuits. The
results are more mixed in state courts, where a number of judges
have denied insurers' motions to dismiss. However, the battle
is far from over. In federal courts, over 50 appeals of dismissals
are being pursued. And, in those state courts that have denied
insurers' motions to dismiss, policyholders still have a long
way to go before establishing coverage for their losses caused by
pandemic-related closures.
