The Ugly Legal Battle Over Restaurant Insurance Has Begun

April 9, 2020 – Media Mention

Partner and chair of Herrick's Insurance & Reinsurance Group, Alan Lyons, was quoted in an Eater article discussing how restaurant owners have united to fight for economic relief in the wake of COVID-19 forced closures. Business interruption insurance remains difficult, if not impossible, to collect on due to the requirement that damages be physical. Some states have proposed legislation compelling insurance companies to pay business interruption claims. “Insurance companies will likely challenge those bills, arguing that it violates the U.S. Constitution because it rewrites insurance policies,” said Lyons. Litigation could take years, Lyons predicts. “It could depend on scientific evidence as to whether the virus was actually present in a particular building, and [whether] it can remain on certain surfaces for a certain part of time,” he says. “Dealing with expert witnesses will take longer, and there could be appeals.”