The COVID-19 pandemic has resulted in government officials in several states issuing orders that shut down businesses such as restaurants, bars, and casinos. Faced with closed operations and uncertain cash flow, these businesses have looked to their insurers to cover their losses. Policyholders have filed cases in Ohio, Illinois, Louisiana, California, Oklahoma, and Florida seeking recoupment of their business interruption losses. These courts will necessarily resolve key issues in the debate over whether the presence of COVID-19 on property constitutes property damage or direct physical loss....
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The Nevada Supreme Court considered the issue of "whether, under Nevada law, the liability of an insurer that has breached its duty to defend, but has not acted in bad faith is capped at the policy limit plus any costs incurred by the insured in mounting defense, or whether the insurer is liable for all losses consequential to the insurer's breach." Century Sur. Co., 2018 WL 6609591 at *1....
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In Givaudan Fragrances Corporation v. Aetna Casualty & Surety Co., N.J. No. 076523, 2017 WL 429476 (Feb. 1, 2017), the Supreme Court of New Jersey, in a case of first impression, decided whether an anti-assignment clause contained in an insurance policy prohibits the assignment of post-loss claims. The Court held that "once an insured loss has occurred, an anti-assignment clause in an occurrence policy may not provide a basis for an insurer's declination of coverage. . . ." Id. at *3....
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