Client Alert: Trends in COVID-19 Business Interruption Coverage Actions

Since July 2020, trial courts have issued more than 370 decisions on dispositive motions in coverage litigation over whether business interruption coverage applies when a business shuts down due to either the coronavirus or government orders issued in response to the pandemic. 85% of those decisions resulted in some form of dismissal of the insured’s coverage claim. The other 15% allowed the case to proceed into discovery (except for one, which found coverage as a matter of law).

This Client Alert, authored by Partner Patrick Frye,  identifies trends in these decisions.