Last month we wrote a piece about AXA's agreement to pay COVID-19 related business interruption claims by a group of restaurants in France after a court ruled that restaurants' revenue losses due to COVID-19 and related government orders were covered under its insurance policies. . According to information, AXA has already agreed to pay over 200 COVID-19 related receivables.
Another European insurer recently made headlines for similar reasons. Despite the initial denial of liability, the Swiss insurance company, Helvetia Insurance, announced that most of its policyholders in the hospitality industry have accepted post – COVID-related coverage losses in business interruptions. According to the settlements, policyholders from Switzerland, Austria and Germany were included.
The positive response from European insurance companies seems to have affected the insurance industry across the continent. For example, the Financial Conduct Authority in the UK announced that it is taking certain insurance companies to court to seek clarification on coverage for COVID-1
The positive response in Europe contrasts with the preliminary positions of the insurance industry in the United States. The headlines on this page of the hemisphere show some insurers 'attempts to avoid liability for COVID-19-related losses, even though they accept billions in policyholders' premiums in exchange for broad-coverage promises. Whether insurance companies in the US will follow their European counterparts remains to be seen. Until then, U.S. policyholders will want to present their COVID-19-related loss claims coverage properly to their insurance companies and retain all rights to pursue such claims in court or through an alternative dispute resolution in the event that their insurance companies incorrectly deny coverage.