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COVID Coverage Questions Linger As Challenges Wind Down
By Abraham Gross
Law360 ( October 10 , 2024 , 6:47 PM EDT ) -- Nationwide efforts to recover insurance payouts for COVID- 19 pandemic losses met a series of setbacks in recent weeks , largely bringing major litigation to a close even as questions linger over key coverage issues that could have lasting effects .
From state supreme courts to federal appellate courts , judges have overwhelmingly rejected policyholders ' arguments that the virus itself or government pandemic orders triggered coverage under property policies , an overarching result which experts for insurers and insureds caution still leaves certain jurisdictions and issues unresolved .
October has already seen the sun set on high-profile challenges on the East and West coasts .
On Oct . 2 , two California restaurant operators dropped their Ninth Circuit challenge to California Supreme Court precedent setting a high bar for virus coverage . And just this week , the Third Circuit declined to revisit its decision to shut down consolidated suits from New Jersey and Pennsylvania businesses .
" Even though there ' s still claims out there , there is a sense for a lot of folks that we ' ve kind of answered the questions — or courts have answered the questions for us — and it ' s time to move beyond COVID ," policyholder attorney Colin Watson of Covington & Burling LLP told Law360 .
Major nationwide litigation to recover insurance payouts for COVID-19 pandemic-related losses has largely been brought to a close , but key coverage issues linger . ( Photo by TOLGA AKMEN / AFP via Getty Images )
For all the certainty that ' s developed about how broad swaths of the country will deal with outstanding COVID cases , experts noted that select jurisdictions still haven ' t had their final say and that policy developments will continue to challenge insurers and insureds alike .
Court Rulings Cement " Uphill Battle " on COVID Claims
To say that insurers have largely succeeded in upholding their COVID-19 loss compensation coverage denials in court would be an understatement .