The Next COVID Shutters Your Insured's Business

The next pandemic strikes a local hospital, resulting in a business income loss as the facility is closed for cleaning. Does the presence of the virus on the surfaces to be cleaned represent a "direct physical loss" sufficient for coverage? Tim, Alissha, and Mike will explore a scenario nobody wants to think about, applying case law from the post-COVID era.   Notable Timestamps   [ 00:34 ] - A hypothetical outbreak of Ebola means that a hospital needs to shut down significant portions of its premises for two weeks to have the area cleaned. Are they covered for the business income loss?   [ 04:06 ] - The team discusses how the Claims Conference closed in the early days of the COVID pandemic.   [ 08:30 ] - COVID presented novel challenges to businesses, and to adjusters handling business income loss claims. Many claims were denied based on virus exclusions or the lack of direct physical loss.   [ 10:38 ] - Many businesses argued that their properties experienced a loss of use, but a majority of courts (NY, IL, IN, FL, OH, WI, MA) so far has held that viruses do not cause direct physical loss.   [ 12:20 ] - Courts in Vermont and California have held that viruses could be a direct physical loss, pending expert testimony.   [ 16:30 ] - Going forward, adjusters can check for virus exclusions, which have become more common since the COVID pandemic.   [ 17:56 ] - Tim provides a recap of the scenario and the points above.   Your PLRB Resources   Coverage question on the "Virus Exclusion, As Defense To COVID-19 Business Interruption Claims" - https://search.plrb.org/?dn=76345&src=gsa   Tim's on-demand CE Course on Property Coverage Fundamentals - https://www.plrb.org/public2/dislearn/description.cfm?mod=p0092   Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/container.cfm?conlink=sec/cq/default.cfm) at no additional charge to you or your company.   Subscribe to this Podcast   Your Podcast App - Please subscribe and rate us on your favorite podcast app   YouTube - Please like and subscribe at @plrb   LinkedIN - Please follow at "Property and Liability Resource Bureau"   Send us your Scenario!   Please reach out to us with your scenario! This could be your "adjuster story" sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to [email protected].   Legal Information   The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.   Music: "Piece of Future" by Keyframe_Audio. Pixabay. Pixabay License. Font: Metropolis by Chris Simpson. SIL OFL 1.1. Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription). Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0). https://freesound.org/people/MATRIXXX_/sounds/506545/