French Court Orders Insurance Company to Pay Restaurant COVID-19 Claims

4 Min Read By Imran Malik

In what has been a closely watched case, a court in France recently ruled that France’s largest insurer must pay on a claim brought by a restaurant forced to shut down due to the COVID-19 outbreak.The ruling has sent shockwaves through the industry with many law firms already making inquiries into the actual language of the policy. Furthermore, arguments in the United States are already developing that certain commercial policies may afford coverage for loss of business income due to the COVID-19 outbreak.

At first glance, business interruption coverage would appear to be an easy claim to file for relief as the COVID-19 crisis continues. After all, businesses were forced to close down for a period due to no reason of their own; therefore, coverage should be afforded. Many insurance companies, however, have already begun to signal their intent to deny pandemic-related claims.

What Is Business Interruption Insurance?In many states, first-party commercial property insurance policies…