Chubb CEO warns retroactive business interruption claims could be fatal to insurance industry
As claims mount, businesses and insurers are trying to predict what coverage looks like in the age of COVID-19. Business interruption insurance is often the coverage in question in these disputes, and we are already seeing legislation and litigation on this topic across the country and around the world. The coronavirus pandemic could bankrupt many companies, and insurers are not immune. The fear is that judges and legislators will require insurers to cover business interruption even when it wasn’t underwritten or was specifically excluded for pandemics.
In this excellent article by A.M. Best (posted with permission), Chubb Ltd. Chairman and CEO Evan G. Greenberg says the insurance industry is “an important part of the economy’s financial plumbing,” goes on to explain that his company will fight retroactive efforts to force insurers to cover business interruption and outlines why such a move could be fatal to the insurance industry.