Robert Tomilson Quoted in Reaction Magazine’s “Business Interruption Relief Under Property Policies? It Could Happen”
No matter the type of property or establishment, owners are all seeking the same thing: recovery from their insurance policies they claim were triggered as a result of COVID-19 exposure.
At this point, 10 separate COVID-19 coverage actions have been filed in seven states. In an article recently published by Reaction Magazine, Robert Tomilson, member, Clark Hill Philadelphia, was quoted on the lifelines that would save these businesses before they go under, as many do not have cash reserves to rely on.
Attorneys representing these businesses have been aggressive, promising policyholders that if they have a property policy, then their business interruption (BI) losses will be covered. This is a dangerous promise to make, and COVID-19 tainting is not an easy thing to prove to an insurer. Questions around business interruption coverage are of particular importance to small businesses that have had to shut down completely or operate at limited capacity.
Tomilson believes it will take anywhere from three to six months for some of the aforementioned high-profile cases to be settled; until then, their claims – and the viability of thousands of similar ones – remain an open question.
“It’s not going to be quick and easy,” Tomilson said. “Plaintiffs are going to take this, and they’re not going to give up on it. This will go on longer than the industry would like.”
Read Tomilson’s full commentary and the article here.
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Tomilson has been legal counsel and trusted advisor to the insurance and financial services industry for more than 20 years, both in private practice and as in-house counsel at a Fortune 100 insurance company. He is a nationally recognized subject matter legal expert in insurance and reinsurance.