Business interruption insurance - losses?

[wondering]

Does any of the Fairfax insurance companies sell business interruption insurance?

 

If so, would there be an escape clause regarding an Act of God?

 

Does this virus epidemic fall under an Act of God?

[petec]

I’ve been wondering tab out this but not had time to research.

[cwericb]

I believe Northbridge does - but not 100% sure.

[StubbleJumper]

The general consensus seems to be that most insurance contracts specifically exclude pandemics as an insurable peril.  I would not expect business interruption claims to be very high.  I had been a bit more curious about workers comp, but Zenith has a bit of an interesting update on its website:

 

https://www.thezenith.com/wp-content/uploads/Zenith-Coronavirus-Update.pdf

 

 

 

SJ

[petec]

Good find re Zenith.

 

Re business interruption insurance - it makes a lot of sense to exclude pandemics, because you’d want to exclude anything that had the potential to shut all businesses at once.

 

Same applies to travel insurance.

[wondering]

thanks all

[StubbleJumper]

Here is a bit of a discussion about business interruption coverage (or lack thereof):

 

https://www.insurancejournal.com/blogs/big-i-insights/2020/03/24/562253.htm

 

 

 

SJ

[StubbleJumper]

The following article is not specifically about an FFH sub, but it is an interesting piece about a group of Canadian dentists who think they are insured against a pandemic and a British insurer that isn't so convinced.  Since not all forum participants read Canadian newspapers, I am sharing the link:

 

 

https://www.theglobeandmail.com/business/article-dentists-fighting-to-get-insurance-payouts-because-office-closure-seen/#comments

 

 

 

SJ

[StubbleJumper]

Article about Prem's comments concerning business interruption insurance and Covid:

 

 

 

https://www.canadianunderwriter.ca/commercial-lines/how-fairfax-predicts-courts-will-react-to-legislated-retroactive-business-interruption-policy-changes-1004177010/

[gfp]

Not sure where to post this but one local restaurant has won their case against Lloyd's in the Louisiana court of appeals.  Not sure this will be an ultimate win for them but I'm no expert on these things.  I know the industry has won almost all their cases as far as denying coverage for physical damage due to the virus / gov. shutdown.  I'm sure others here know more about how these have been shaking out.

 

https://www.reuters.com/legal/litigation/la-appeals-court-dishes-up-win-restaurant-covid-biz-interruption-case-2022-06-17/

 

Fun fact, this restaurant, "Oceana Grill," is absolutely disgusting and happens to also be the site of my only appearance on the TV show Gordon Ramsey's Kitchen Nightmares.  My friend was in town to direct the episode and he put us in the show.  It was so foul I can't even describe it.  In the "relaunch" scene where they reintroduce the "fixed" restaurant a waitress dropped our entire bottle of red wine, which shattered and essentially filled my wife's leather purse with shards of glass and red wine.

 

The funniest part was the owner of this restaurant is a total coke-head and kept forgetting he was mic'ed up for the TV show and just continuously went into neighboring establishments' bathrooms to snort more coke - all of which was fully appreciated by the TV show's control room.  Again, if you are ever in New Orleans - do not eat here.

 

https://www.businessinsurance.com/article/20220615/NEWS06/912350568/Restaurant-entitled-to-business-interruption-cover-State-appeals-court-Cajun-Co

Edited June 17, 2022 by gfp

[John Hjorth]

Priceless reading, gfp! lol! Thank you for sharing.