Early Suits Seek ‘Persuasive’ Power in Coronavirus Coverage Fights

Insurance companies and policyholders seeking to determine whether business interruption coverage extends to coronavirus-related shutdowns are asking the courts for early declaratory judgments, a tactic more commonly used in other types of coverage fights.

Early declaratory judgment lawsuits are typically filed by insurers looking to determine whether they are expected to provide liability coverage when a policyholder gets into an accident or faces some other type of third-party claim.

A declaratory judgment ruling serves as a sort of instruction in the insurance context, with a judge stating that an insurer either has no duty to cover a claim or is ...