Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: COVID-19 business interruption could cost billions, top tornado states.
We interrupt this interruption
Excerpted from Interrupting the COVID-19 business interruption: Now what?, by Patrick Kelahan for Property Casualty 360: There are 25 million small businesses in the U.S., 30 million questions regarding what comes next after COVID-19, and now, how do other risk outcomes like damage from rioting and vandalism dovetail with COVID issues? Let’s add, how do we prepare for future pandemics and concurrent perils? There, we just queued up enough to fill a book, but we’ll start with this article, which provides guidance for insurance agents and brokers to share with their clients or to follow themselves.
Business disruption coverage could cost billions
U.S. property and casualty insurers have warned that the coronavirus pandemic could cost them $255 billion to $431 billion a month if they are required, as some states are proposing, to compensate firms for income lost and expenses owed due to virus-led shutdowns, an amount it says would make insurers insolvent. Insurers argue that business interruption policies only cover physical property damage, prompting some policyholders to take legal action. Read more in Some Question Insurers’ Estimates of Coronavirus Business Interruption Claims, by Alwyn Scott and Suzanne Barlyn for Insurance Journal.
Tornadoes: the top 10 states
On average, the U.S. records 1,253 tornadoes annually, according to the National Oceanic and Atmospheric Administration. The U.S. experiences more tornadoes than any other country in the world by more than a 10:1 margin. For example, the U.S. total is nearly 13-times greater than that of second-place Canada, which experiences an average of 100 tornadoes each year. Check out Danielle Ling’s Property Casualty 360 article, The states that experience the most tornadoes annually, for a slideshow on the top ten states.
Attorney behind Florida lawsuits suspended
Excerpted from Florida Supreme Court Suspends Attorney Behind Thousands of Insurer Lawsuits, by Amy O’Connor for Insurance Journal: The Florida Supreme Court has granted an emergency request by the Florida bar to immediately suspend an attorney who, with his firm, has filed thousands of assignment of benefit and first party lawsuits against Florida property insurers over the last several years. A former associate of the firm testified it had filed more than 10,000 suits against Florida property insurance companies.
“Perfect storm” could hit islands
Excerpted from Island nations facing a ‘perfect storm’ as the coronavirus intersects with hurricane season, by Chloe Taylor for CNBC: Small island states will be hit by a “perfect storm” in the coming months as the Covid-19 pandemic and extreme weather conditions strike simultaneously, the head of the Commonwealth has warned. The interaction between the pandemic, the resulting economic downturn, a slump in tourism and the rising prevalence of extreme weather events meant many Caribbean and Pacific Island nations were now facing “the perfect storm,” she said.