Since the SARS outbreak nearly 20 years ago, business interruption insurance policies are typically written to cover “direct physical loss or damage” with exclusions for fallout and losses from viruses, Global Insurance Services partner Jared T. Greisman explained to MarketWatch. “Coverage without that exclusion is not common, and it’s something that’s purchased specifically as a different type of product. It’s not common that a business will secure that type of coverage,” he said.
In the wake of the COVID-19 pandemic, however, businesses are filing claims “in a volume that has never been seen before,” regardless of the policy language, he said. “Generally, you have the absence of direct physical loss or damage. Because the virus is a temporary or ephemeral event, carriers are denying them.”
Jared T. Greisman is a partner at Goldberg Segalla and a leader of the First-Party Property Coverage subgroup of the firm’s Global Insurance Services practice. He focuses on counseling insurers and handling litigation and arbitration of first-party property and commercial losses, particularly in the wake of natural disasters. Jared handles many aspects of civil litigation, including insurance coverage and subrogation, as well as litigating matters involving business disputes for hedge fund advisors, collateral managers, and partnerships. His extensive experience also includes representing clients in matters regarding torts, construction defects, and faulty products and equipment. Jared has appeared in numerous state and federal courts at the trial and appellate levels throughout the United States on behalf of domestic and foreign insurers and businesses. He represents clients around the country and splits his time among the firm’s Manhattan, Newark, and West Palm Beach offices.
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