COVID-19 has impacted every aspect of our economy. Educational institutions are closed. Retail operations, bars, restaurants, hotels and service providers are also closed or, in some cases, operating at significantly reduced hours. Public forms of travel are discouraged. Supply chains have been interrupted.
These developments will likely result in coverage disputes and litigation surrounding the availability of business interruption coverage; in particular, whether the COVID-19 Pandemic has triggered or will trigger such coverage. Indeed, a restaurant in New Orleans, Louisiana has already commenced an action in a Louisiana state court seeking a declaration of coverage for Coronavirus-related losses (Cajun Conti, LLC et. al v. Certain Underwriters at Lloyd’s London, et al., Civil District Court for the Parish of Orleans, Louisiana). From our point of view, it is not a question if actions will be brought in Canadian Courts, but when.