COVID-19 Insurance Issues To Watch In Civil Law Countries

A recent judgment from a court of appeal in Spain shows that the outcome of coverage disputes over COVID-19 business interruption losses in civil law jurisdictions may be different from what would be expected in a common law country.

The decision raises some important issues for international insurers and reinsurers to consider, particularly those based in the U.S. or other common law jurisdictions, who may not be familiar with the civil law principles applied by the court. 

José Umbert, of the London office of Zelle, and Miguel Torres, of Martínez-Echevarría & Rivera Abogados, wrote an article regarding this judgment and its potential implications. Click here to read COVID-19 Insurance Issues To Watch In Civil Law Countries. 

Posted by José Umbert

Commercial Property Insurance Coverage for Texas Winter Freeze Losses

For an incredible 10-day period in mid-February, Texas was battered by a brutal winter storm bringing snow, ice, and record-low temperatures. Millions of Texans were without power and water for days. These conditions forced thousands of Texas businesses to close during the storm. Many of these businesses also sustained property damage from pipe bursts and resulting water discharge. The property insurance claims have already started to come in. Some believe the storm will be the largest insurance event in Texas history.

Todd Tippett and David Winter, of the Dallas office of Zelle, wrote an article that addresses some of the issues expected to arise in considering whether commercial property insurance policies will provide coverage for Texas freeze claims.  Click here to read Commercial Property Insurance Coverage for Texas Winter Freeze Losses.

Posted by Todd Tippett and David Winter

California: Developments in COVID-19 Business Interruption Claims

As the shelter-in-place orders continue to impact businesses across California, California’s lawmakers are responding to the growing unrest voiced by the state’s business owners.

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California at Forefront of Business Interruption Coverage Response to COVID-19

The now ubiquitous shelter-in-place orders enacted across the United States began in the San Francisco Bay Area, followed days later by California Governor Gavin Newsom’s decision to issue the first statewide shelter-in-place order. It is fitting, then, that Californians are at the forefront of the fallout of these orders, namely, the interruption of myriad businesses and looming uninsured losses.

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Massachusetts and Ohio Follow New Jersey Attempt to Re-Write Existing Policies to Cover COVID-19 BI Losses

Lawmakers in Massachusetts and Ohio introduced bills this week to rewrite existing insurance policies to cover businesses’ economic losses arising from Covid-19 work stoppages. The proposed language in both measures mirrors a New Jersey bill that was introduced last week but tabled after insurance company representatives raised objections to its legality and constitutionality.

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States are Limiting Insurers' Ability to Cancel Policies During Pandemic

Following other states, like Georgia, that have recently issued orders that prevent insurers from canceling insurance policies during the ongoing pandemic, Delaware has issued an order that insurers cannot cancel policies during the pendency of the declared state of emergency. Pennsylvania has not barred insurers from canceling policies, but the Insurance Commissioner issued a notice urging insurers to be flexible with payment options for those impacted by the pandemic, but did not prevent cancellations. 

Insurers should closely monitor this situation in every state to make sure that they are abiding by these ever-evolving orders from the states regarding cancellation of policies.

Posted by Jonathan MacBride

TDI Extends Claims-Handling Prompt Payment Deadlines In Response To COVID-19

Amid the chaos surrounding the COVID-19 outbreak, the Texas Department of Insurance has issued a Commissioner’s Bulletin extending certain claim-handling prompt payment deadlines for property carriers handling claims in Texas. The Texas Prompt Payment of Claims Act allows for a 15-day extension of claim-handling deadlines for property carriers in the event of a major national disaster, as defined by the Texas Commissioner of Insurance. In the wake of the Commissioner’s determination that the COVID-19 pandemic is a national disaster, Commissioner’s Bulletin # B-0007-20 establishes extended deadlines for claim-handling procedures for property carriers. 

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