Business interruption (BI) claims stemming from the coronavirus pandemic have hit a new high.  A Florida federal court – see Urogynecology Specialist of Florida, LLC v. Sentinel Insurance Company, Ltd., No. 6:20-cv-1174-Orl-22EJK (M.D. Fla.) – recently determined that a “virus exclusion” does not prohibit a policyholder from pursuing insurance for COVID-related BI loss.  The policyholder sought to recover, under an “all risk” insurance policy, the losses resulting from its medical practice. The insurer moved to dismiss the lawsuit, arguing the policy expressly excludes losses caused by the virus.  The court sided with the policyholder and denied the insurer’s motion to dismiss.  

More than a year ago, the U.S. declared a national emergency in response to COVID-19.  States quickly followed with stay-at-home orders and lockdowns.  In March 2020, the governor of Florida issued an executive order declaring a state of emergency due to the pandemic, which forced policyholders to close their doors and cease normal business operations.

Due to the unprecedented COVID-19 pandemic, businesses suffered and continue to suffer substantial losses.  To recover for those losses, businesses have looked to their insurance policies.  Thousands of COVID-19 loss lawsuits are being heard in courts across the country, according to data from the University of Pennsylvania Law School.

Business Interruption (BI) Loss

BI coverage is a key source of protection for coronavirus-related business losses.  It reimburses policyholders for income lost as a result of “direct physical loss or damage to” covered property.  BI insurance, part of a property insurance policy, typically is triggered when property is damaged or unusable as a result of a natural disaster.  

Insurers may attempt to claim that policyholders are not entitled to BI coverage because the presence of the coronavirus on covered property does not constitute “direct physical loss or damage.”  Insurance companies want to reduce their liability exposure.  They are unconcerned with meeting their contractual obligations.  The stage is set for a battle between insurers and their policyholders over pandemic-related financial losses. 

Policyholders should closely examine with their attorney the specific language of coverages and exclusions and analyze how these provisions will be interpreted under the applicable law.  Even if a policy contains exclusions, policyholders should not accept insurers’ denials, delays or under-payment of pandemic-related claims at face value.  For your confidential case evaluation, contact Corless Barfield Trial Group at 813-258-4998.  

Court Rulings 

Recent decisions from Florida, Ohio, North Carolina, Oklahoma and Washington found coverage for BI losses arising out of COVID-19 even in the absence of changes to the physical structure of covered property.  The trend is for courts to interpret the relevant coverages broadly while construing related exclusions narrowly. 

In general, policyholders may receive more favorable rulings in state courts than in federal courts.   For example, several state courts in California have held that loss of property use could be enough to meet the physical loss or damage threshold.  Whereas in some federal courts, like Massachusetts and Arizona, federal judges found that a tangible property alteration was required, and that loss of use wasn’t enough.  

Different policies with different language, as well as factual differences and the dispute venue can result in a fragmented legal regime for these BI loss claims.  That is why you need an experienced insurance disputes attorney fighting aggressively for your rights.  

Solutions 

Business owners bleeding money during the coronavirus pandemic want their insurance to cover their losses.  That’s what they bargained for when signing a contract with their insurance company.  Insurance is there to help you prepare for the unknown.  But what happens when your insurance company doesn’t live up to their end of the bargain?  You hire Corless Barfield Trial Group. 

The insurance coverage landscape is changing on a daily basis as policyholders file new lawsuits to address business losses resulting from the pandemic.  For specific information on how your claim for insurance might proceed, how to assert property loss and damage, and insight into how different state and federal courts are ruling, call us today at 813-258-4998. 

As a nationally recognized insurance dispute and property damage trial law firm, we are known for securing record-breaking results for our clients.  Nevertheless,  the coronavirus crisis continues to impact Florida courts.  Most courts have not been allowed to move forward in their plans to reopen for in-person trials due to a rise in COVID-19 cases and more contagious strains of the virus.

Recently, some criminal trials have begun to take place but criminal cases take priority over civil lawsuits.  In fact, the Florida court system has asked civil trial judges to step in to assist with the backlog of criminal trials.  As a result, many civil cases must wait until courts have cleared the logjam of criminal cases.

Corless Barfield Trial Group is proud to participate in Florida’s first federal civil jury trial to take place entirely via Zoom in a case styled Cheryl Staple v. Northwestern Mutual Life Insurance Company.  However, trials in the era of COVID are the exception rather than the rule. 

Judges state they do not expect civil trials to start back up in earnest until June 2021 at the earliest.  Courts are adapting their operations to establish a new normal, which includes very limited in-person hearings and remote jury trials.  As such, patience and perseverance must be practiced. 

If you have an insurance dispute or property damage claim, you should speak with a lawyer.  Any delay in seeking representation can lead to a loss of evidence and fewer opportunities to successfully resolve your claim.  If you are engaged in a dispute over the following, call 813-258-4998:

• Sinkhole Damage
• Flood Damage
• Fire Damage
• Wind Damage
• Hurricane/Storm Damage
• Life Insurance
• Construction Defects
• Mold Damage

Our goal is for your case to move forward in a timely manner.  Please be assured that we have a plan in place and that our firm will always work hard to ensure success.  We will make every effort to exceed client expectations during the coronavirus crisis. 

Above all, be safe and take care of yourselves and your families.  If you have any questions or concerns, please contact our office. 

Take Me Out to the Ballgame 

All 30 MLB teams, the baseball commissioner’s office, MLB’s digital and streaming services, MLB Network, and Tickets.com have collectively sued their insurance providers, citing massive property damage and “time element” losses that the clubs and their affiliates have experienced due to the pandemic, according to the lawsuit filed in Alameda County, California. 

The lawsuit filed in October by MLB alleges that providers AIG, Factory Mutual, and Interstate Fire and Casualty Company have refused to pay claims made by MLB despite the league’s “all-risk” policy purchases.   

“Baseball paid millions of dollars in premiums year after year because it deliberately bought broad, more protective coverage” the lawsuit states, but the insurance companies “have very publicly refused to live up to their contractual obligation to pay what they promised.”  

Unfortunately, this is an all-too-common story concerning the insurance industry.  In fact, it’s why our law firm takes particular pleasure in successfully suing insurance companies who wrongfully and in bad faith refuse to cover valid claims. 

Let’s Play Ball 

In the era of COVID-19, homeowners and business owners must hire a law firm that aggressively seeks remedies for one’s home or business losses.  Homeowners and business owners are required to carry insurance policies that protect them when disaster strikes. The most common claims involve disasters such as floods, hail, wind, fire, sinkholes, and tornadoes.  

Corless Barfield Trial Group is a nationally recognized insurance law firm with the skill, experience, and resources to successfully fight insurers in court.  CBTG is committed to ensuring that insurers are held accountable for insuring property damage and business interruption losses.  To schedule a free consultation with CBTG, call 813-258-4998 or email service@corlessbarfield.com.  

Play Every Game Like Its Game 7 

The MLB lawsuit is an important case study because it illustrates the types of COVID-related insurance claims we’re seeing more frequently in court.  

MLB likely lost billions of dollars on unsold tickets, hundreds of millions on concessions, tens of millions on parking, and many more millions on suites and luxury seat licenses, merchandise sales, and corporate sponsorship.  It cites in its lawsuit over a billion dollars in local and national media losses, plus tens of millions in missed income for MLB Advanced Media.  It says all of those losses should be covered by their insurance policies.

Swing for the Fences

You’ve got to be in it to win it, and our goal is always the same: protect insureds from the wrongful denial of insurance coverage for losses.  CBTG trial lawyers will review your insurance policy and identify whether your policy provides coverage and what stated exclusions are named in the policy.  We will then gather the necessary documentation needed to substantiate and submit your claim.  

One of the minor league cases, filed in Arizona and led by the Chattanooga Lookouts, a Class AA minor-league affiliate of MLB’s Cincinnati Reds, has been dismissed due to a virus exclusion in the policy.  

However, a Missouri federal judge ruled jurors should be able to decide if Cincinnati Financial Corp. should pick up the tab for coronavirus losses claimed by a group of restaurants and hair salons under an “all-risk” policy.  (This is the same type of “all-risk” policy language used in support of the league’s lawsuit.)  The judge said the virus made their properties “unsafe and unusable, resulting in direct physical loss to the premises and property.”

Insurers have insisted that financial losses caused by the coronavirus do not constitute physical loss or property damage.  MLB is claiming that the virus has led to both.  

We’re in a League All Our Own

Right now, many insurance providers are engaging in widespread bad faith behavior by denying coverage to insureds who should be protected under their policies.  Our insurance lawyers will vigorously advocate for insureds and their right to coverage. 

By reviewing your policy in-depth and determining your legal options, we’ll help you understand your options and find a clear path forward.  We assist clients in getting the compensation they bargained for under their insurance policy.   Call CBTG at 813-258-4998.

The World Health Organization (WHO) declared the COVID-19 coronavirus outbreak as a pandemic. This designation signifies that we are in the midst of a global disease outbreak, which occurs when a new virus emerges for which there is little or no immunity in the human population.  Coronavirus can cause serious illness, and spreads easily person-to-person worldwide.

Corless Barfield Trial Group is your Tampa-based law firm that is open and available to address legal matters with our clients nationwide. Our attorneys continue to guide clients through the complex process of property damage, insurance disputes, and personal injury law. If you have questions about court closures, pending legal matters, or new cases, please call us at 813-258-4998.  We have moved to a remote platform and will return your calls in an expeditious manner. 

Our law firm wants to do our part to contain COVID-19’s spread and to implement the federal and state government’s health and safety recommendations. We do this out of concern for the safety and health of our clients and hard-working staff.  

You may also have questions about different areas of law that may be impacted by the coronavirus, including contracts, force majeure clauses, employment law, or workers’ compensation. We invite you to call Corless Barfield at 813-258-4998.  We are here to help clients better understand and prepare for impending legal complications resulting from the COVID-19 pandemic. We have lawyers and support staff ready, willing, and able to answer your questions. 

For the latest health information, visit cdc.gov and who.int. You may also find the following link helpful regarding Florida State Courts: informz.net/FB/data/images/AOSC20-13.pdf. 

Check back on our website and social media platforms for continual updates as part of Corless Barfield Trial Group’s ongoing coverage about important COVID-19 coronavirus topics and resources.  Our attorneys continue to monitor developments to provide up-to-date advice to our clients.

We deliver outstanding results, and we will continue to do so. Together, we will get through this.