Interviewed by A.M. Best, Goldberg Segalla partner Jared T. Greisman explained that insurers are likely to face significant litigation costs arising from the coronavirus pandemic—even if coverage for claims is far from certain.
Coronavirus claims have already been filed in Louisiana and Oklahoma, and more are expected, under policies ranging from first-party property, business interruption, and event cancellation to D&O, E&O, and workers’ compensation.
“Here you’ve got an occurrence that is so different from what we traditionally think of when considering insurance claims,” said Jared, a member of the firm’s Global Insurance Services practice and Coronavirus Coverage Team. Despite the prevalence of virus and bacteria exclusions following the 2003 SARS outbreak, these exclusions, Jared pointed out, haven’t been litigated in “any really meaningful way.” Plaintiffs affected by the coronavirus pandemic—with little to lose and much at stake—are likely to file claims anyway, he reasoned.*
* ©A.M. Best—used with permission.
Goldberg Segalla is one of the premier law firms advising and representing the global insurance and reinsurance industry. Our 75-lawyer Global Insurance Services practice group, which Law360 ranks among the largest in the United States, exists to serve insurers, reinsurers, and all others operating in the insurance arena.
The firm’s Coronavirus Coverage Team serves multiple leading insurers on national and regional coronavirus coverage panels, and provides ongoing counsel to national and international insurers regarding the latest developments in coronavirus-related legislation and regulation as well as trends in claims and litigation.
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