Chubb CEO Evan Greenberg estimates the pandemic will hurt business insurers by “$100B or greater,” writes New York Times’ Mary Williams Walsh in DealBook. Not only will claims come flooding in — from people exposed to the virus at work, patients injured by overwhelmed hospital systems, travelers whose trips were canceled — but insurance companies… Continue reading Chubb CEO Sees $100B or More Pandemic Cost for Insurers
Tag: business interruption
New Drama on BI Insurance, Auto Refunds, Higher Premiums and Legal Battles
California Insurance Commissioner ordered insurance companies to issue automobile policy refunds for March and April due to lower auto collision risk during the shelter-in-place. USAA voluntarily issued $520 million in refunds to insurers due to lower auto accidents. Meanwhile, premiums on other policies are expected to increase substantially and there are major legal battles on… Continue reading New Drama on BI Insurance, Auto Refunds, Higher Premiums and Legal Battles
Politicians Push Insurers to Resolve Mounting Disputes Over Covid-19 Losses
Insurers are starting to take heat in Washington, D.C., over denials of claims for business income losses tied to government-ordered shutdowns. In a letter Monday viewed by The Wall Street Journal, U.S. Rep. Pramila Jayapal (D., Wash.) asked insurance chief executives to justify refusals to pay out on “business interruption” and related coverages in policies… Continue reading Politicians Push Insurers to Resolve Mounting Disputes Over Covid-19 Losses
Restaurant Industry Calls for Changes to Paycheck Protection Program
The restaurant industry is calling on Congress to make changes to the Paycheck Protection Program (PPP), as well as provide further funding to help struggling businesses during the coronavirus pandemic. National Restaurant Association wrote to congressional leaders on Thursday to ask for revised loan restrictions so that restaurants can spend 50 percent or more of… Continue reading Restaurant Industry Calls for Changes to Paycheck Protection Program
Canadian Insurers Hit with Class Action Suit for Refusing to Pay BI Claims
As COVID-19 forces businesses to close or limit their operations, a Regina business owner is getting involved in a national class action lawsuit against indemnity insurers in Canada. Thomas Siarkos, owner of Memories Fine Dining in Regina, alleges that despite paying for “premium insurance”, his insurer is refusing to pay business interruption insurance. He says… Continue reading Canadian Insurers Hit with Class Action Suit for Refusing to Pay BI Claims
Insurers Facing Political Pressure Over Coronvirus Claim Denials
Insurers are increasingly facing political pressure to pay what could be an enormous sum in coronavirus claims — even though many carriers state their insurance policies exclude pandemics. Anger on Capitol Hill is growing over moves by insurers to deny claims being filed by restaurants, retailers and other businesses that believed they had coverage to… Continue reading Insurers Facing Political Pressure Over Coronvirus Claim Denials
Why the Push-Back on Business Interruption Insurance?
Widespread Interruptions As the national effort ramps up to arrest the spread of COVID-19, the infamous coronavirus, many small businesses are facing tough times. The government has recommended restricting gatherings to fewer than 10 people and urged restaurants and the like not to serve food on the premises, but only to do so through take-out… Continue reading Why the Push-Back on Business Interruption Insurance?
U.S. Coronavirus Lockdown to Last 10-12 Weeks, Top Trump Official Says
The lockdown affecting large segments of the American public to try to curb the spread of the coronavirus is likely to last 10 to 12 weeks, or until early June, U.S. Treasury Secretary Steven Mnuchin said on Sunday. Americans are adapting to the biggest change in daily life since World War Two with schools closed,… Continue reading U.S. Coronavirus Lockdown to Last 10-12 Weeks, Top Trump Official Says
NJ Legislature Considering Bill to Force Insurers to Pay COVID-19 BI Claims Expressly Excluded by ISO’s “Virus” Exclusion
As economic losses from the COVID-19 pandemic continue to mount, there has been much discussion about the potential availability of insurance, especially under Business Interruption policies. In 2006, ISO adopted a mandatory exclusion for its Business Interruption policies designed to preclude coverage for virus-related losses. The New Jersey Legislature is now trying to eliminate it.… Continue reading NJ Legislature Considering Bill to Force Insurers to Pay COVID-19 BI Claims Expressly Excluded by ISO’s “Virus” Exclusion
AIR Worldwide Estimates by End of March Coronavirus Deaths Globally Could Reach 10K-30K
According to catastrophe risk modeling firm AIR Worldwide, as of March 17, 147 countries, areas, or territories reported confirmed cases of COVID-19. The country most affected by the outbreak has been China, which has reported 82,007 cases and 3,338 deaths; however, China has also reported that the number of new cases there has continued to… Continue reading AIR Worldwide Estimates by End of March Coronavirus Deaths Globally Could Reach 10K-30K