Friday, April 9, 2021

ARE COVID PANDEMIC BUSINESS INTERRUPTION LOSSES INSURED?

 


THE WELL-KNOWN CULINARY DATING WHILST SIPPING ESTABLISHMENT, "MIKE'S MEET MARKET," IN AUSTIN, TEXAS TOOK A TERRIBLE PROFIT-WHIPPING IN 2020 AS A RESULT OF THE COVID PANDEMIC.  MMM HAS SIZABLE STANDARD FIRST-PARTY PROPERTY AND BUSINESS INCOME COVERAGE. 

DOES MIKE'S HAVE COVERAGE FOR THIS LOSS?

Michael Sean Quinn, Ph.D., JD* 

*Quinn & Carmona

1300 West Lynn, Suite 102 Austin Texas 78703
PO Box 162344  Austin Texas 78716
(o) 512.768-6840
(f) 512.768-6842
(q-c) (512) 656-0503
(email) qclaw-adr.com
(another email) mquinn@msqlaw.com 


Present answer: Don't know. Hard to tell. No rock-solid, damn-certain Texas precedent. Lots of business, economic, political opinions floating about, some posing as obvious and therefore pseudo-certitudes. Everybody knows this. 


Any case decisions anywhere that might give some clues? Yes, but--alas, as one might expect--they are going both ways, though most are saying, "No such coverage."


Here's an unusual example: In re Society Insurance Company, COVID-19 Business Interruption Protection Insurance Litigation, MDL No. 2964 (N.D. Ill., February 22, 2021).








*Quinn & Carmona

1300 West Lynn, Suite 102 Austin Texas 78703
PO Box 162344  Austin Texas 78716
(o) 512.768-6840
(f) 512.768-6842
(q-c) (512) 656-0503
(email) qclaw-adr.com
(another email) mquinn@msqlaw.com