Tag Archives: Insurance and Reinsurance

New Workers’ Compensation Rules for COVID-19 in California

In what could be a sign of things to come across the country, a new workers’ compensation insurance law recently took effect in California that may make it easier for employees to obtain workers’ compensation insurance benefits if they become ill from COVID-19.

To read the full text of this Duane Morris Alert, please visit the firm website.

Consolidation Of All Federal Business Interruption Cases Rejected by Judicial Panel on Multi-District Litigation

On July 31, the seven-member Judicial Panel on Multi-District Litigation (JPML) heard oral argument of extraordinary length on the potential consolidation of all federal cases involving business interruption coverage relating to COVID-19 and/or COVID-19 shutdown orders, totaling approximately 449 such federal cases, roughly 200 of which are putative class actions.

To read the full text of this post by Duane Morris partner Damon Vocke, please visit the Duane Morris Insurance Law Blog.

Reimbursement Rate for Out-of-Network Emergency Services: Executive Order Potentially Sets Precedent

On April 9, 2020, Governor Baker issued an emergency order, mandating that insurers cover all medically necessary emergency department and inpatient services costs of COVID-19 treatment at both out-of-network and in-network hospitals and other medical facilities, without any cost to the patient, setting the OON reimbursement rate at 135% of Medicare, and prohibiting providers from balance billing. The Governor appears to have relied on § 7 of the Massachusetts emergency preparedness and response law in issuing the Order.  Section 7 gives the Governor broad powers during a state of emergency, including “[r]egulation of the business of insurance and protection of the interests of the holders of insurance policies and contracts and of beneficiaries thereunder and of the interest of the public in connection therewith.”

To read the full text of this post by Duane Morris attorney Emmy Monahan, please visit the Duane Morris Health Law Blog.

Oral Argument on Potential Consolidation of Business Interruption Coverage Cases Related to COVID-19

On July 30, the Judicial Panel on Multi-District Litigation (the Panel) heard oral argument of extraordinary length on the potential consolidation of all the federal cases involving business interruption coverage relating to COVID-19 and/or the COVID-19 shut-down orders.  There are some 449 such federal cases, approximately 200 of which are putative class actions.

To read the full text of this post by Duane Morris partner Damon Vocke, please visit the Duane Morris Insurance Law Blog.

Berkshire Hathaway Fights Bid To Invalidate Virus Exclusion

Berkshire Hathaway and one of its units on Monday urged a Pennsylvania federal court to toss a restaurant’s suit seeking insurance coverage for losses caused by the COVID-19 pandemic, arguing that a virus exclusion “plainly applies” to the restaurant’s claims.

Berkshire Hathaway and National Fire are represented by Robert L. ByerJulie S. Greenberg and Damon N. Vocke of Duane Morris LLP.

To read the full text of this article, please visit the Law360 website.

COVID-19, Business Interruption Insurance and Direct Physical Damage under New York Law

To date, approximately 150 business-interruption insurance coverage lawsuits have been filed in federal courts arising from COVID-19 and related government-ordered restrictions. In what appears to be the first substantive ruling on the merits in these cases, the Southern District of New York recently ruled against an insured who could not meet its burden to show a likelihood of success in establishing “property damage” due to the novel coronavirus to support its claim for injunctive relief. Judge Caproni expressed sympathy “for every small business that is having difficulties during this period of time,” but concluded that “New York law is clear” in requiring actual property damage to trigger business interruption coverage. Because the insured’s coverage theory rested on a government shutdown in the absence of any property damage, the Court denied its preliminary injunction motion, reasoning “this is just not what’s covered under these insurance policies.”

To read the full text of this post by Duane Morris attorneys Damon Vocke and David T. McTaggart, please visit the Duane Morris Insurance Law Blog.

Insurance Industry Prevails in Decision on COVID Losses for Business Interruption Before the Pennsylvania Supreme Court

In the bellwether case of Joseph Tambellini, Inc. v. Erie Insurance Exchange, the Pennsylvania Supreme Court was petitioned under its King’s Bench powers to assume plenary jurisdiction of an insurance coverage dispute that had been filed in the Court of Common Pleas, Allegheny County, Pennsylvania.  The high court was asked to decide critical legal issues that would have impacted thousands of other insurance claims that might arise in the future from the COVID-19 pandemic. Duane Morris was retained by insurer trade associations, including APCIA, NAMIC, PAMIC, and the Insurance Federation of Pennsylvania (the “Insurance Industry Amici”), to oppose this extraordinary petition.

To read the full text of this post by Duane Morris partner Damon Vocke, please visit the Duane Morris Insurance Law Blog.

Congressional Efforts to Compel Coronavirus Business Interruption Insurance

We previously wrote about the growing number of lawsuits by insureds seeking business interruption insurance coverage for business losses in response to the novel coronavirus (here and here), and the constraints that state and federal governments should face were they to compel such coverage. We also previously detailed nationwide efforts aimed at enacting legislation compelling business interruption and contingent business interruption insurance for COVID-19 losses. As of the date of this update, eight states have proposed a number of bills relating to business interruption insurance, and Congress has also waded in.

To read the full text of this post by Duane Morris attorneys Dominica C. AndersonPhilip R. Matthews and Daniel B. Heidtke, please visit the Duane Morris Insurance Law Blog.

Pennsylvania Insurance Department Warns of Risks Related to Non-Compliance of COVID-19 Business Closure Orders

On May 11, 2020, Pennsylvania Insurance Commissioner Jessica Altman reminded businesses of the importance of complying with Governor Tom Wolf and Department of Health Secretary Rachel Levine’s orders – for counties in both the red and yellow phases.

To read the full text of this post by Duane Morris partner Brad Molotsky, please visit the Duane Morris Project Development/Infrastructure/P3 Blog.

California Executive Order Presumes Employees Who Contract COVID-19 Are Eligible for Workers’ Compensation Benefits

By Brooke B. Tabshouri

On May 6, 2020, Governor Gavin Newsom issued Executive Order No. N-62-20. The order states that employees will be presumed to have contracted COVID-19 in the course and scope of employment for purposes of workers’ compensation benefits if all of the following conditions are satisfied:

  • The employee contracts it within 14 days of performing labor at the employer’s direction and at the employer’s worksite;
  • If such work occurred on or after March 19, 2020;
  • The worksite was not the employee’s home; and
  • The positive test is confirmed by a physician within 30 days.

Continue reading California Executive Order Presumes Employees Who Contract COVID-19 Are Eligible for Workers’ Compensation Benefits