Berkshire Hathaway Inc. asked a federal court on Monday to dismiss a lawsuit filed by a policyholder in one of its insurance units seeking business breakage coverage for coronavirus-related losses. says the National Fire & Marine Insurance Co. policy included a coverage of virus exclusion that blocks coverage, and other terms of the policy included a claim for direct physical loss or damage to trigger coverage of business interruptions.
last month at the Pittsburgh Federal Court, 1 SANT Inc. v / b / a Town & Country and d / b / a Gatherings Banquet & Event Center v. Berkshire Hathaway Inc. a New Castle, Pennsylvania, the restaurant and tavern claimed that Berkshire Hathaway wrongly denied its claim for business interruption coverage for income lost during the COVID-1
The policyholder argued, inter alia, that virus exemptions used by insurance companies since 2006 should be invalid because the policy formulations that formulated them made incorrect explanations to the supervisory authorities.
Berkshire Hathaway states in its brief rejection proposal that National Fire & Marine had never changed its position that virus exclusion was needed to solve problems that insurers may face in trying to increase coverage for virus-related losses.
There is zero controlling judicial authority that the plaintiff can assert an erroneous statement instead of claiming a change of position. Do not remember that the statements made in 2006 were demonstrably not false. Note that the plaintiff only claims that they were allegedly false. In fact, an alleged false original statement is not relevant. A change of position is the element, "the application said.
The lawsuit should also be dismissed because the restaurant lost revenue due to government-controlled lockdowns rather than direct physical loss or damage required by policy, Berkshire Hathaway claims.  The case covers a number COVID-19 lawsuits filed against insurance companies in state and federal courts across the U.S. since the pandemic began.Most cases are pending, but in a Michigan state court earlier this month, a judge ruled that a restaurant owner was not due to compensation according to his policy because there was no direct physical loss or damage to his property from the virus.
In a May judgment in New York, a judge ruled in favor of an insurance company in a COVID-19 insurance suit filed by a newspaper publisher. .
More insurance and risk management news about the coronavirus crisis here .