Sunday, May 24, 2020

Insurance Oh-Oh: "French court orders insurer to pay restaurant’s business interruption losses from coronavirus"

This is an exposure that could run into the tens of billions in the major property/casualty markets.
From The Telegraph, May 24:
French court has ordered the multinational insurance company Axa to compensate a leading restaurateur for income lost because of the coronavirus shutdown in a landmark ruling expected to prompt lawsuits by other restaurant across Europe.

The firm had refused to pay compensation to Stéphane Manigold, whose four Paris restaurants include the Michelin-starred Maison Rostang. It argued that his policy did not cover the emergency lockdown.

But the Paris Commercial Court ruled this weekend that Axa France must make an initial payment of €45,000 (more than £40,000) to Mr Manigold while a court-appointed expert assesses the extent of his losses.

In a judgment likely to set a precedent in France and other European countries, the court dismissed Axa’s argument that Mr Manigold’s policy would have covered the closure of one restaurant by the authorities but did not apply to a general public health measure.

About 100 other French restaurateurs have initiated legal proceedings against their insurers since Mr Manigold brought his case against Axa over one of his restaurants, Le Bistrot d’À Côté Flaubert....

If interested see also:
March 31
P&C: Business Interruption Insurance—Here Come the Lawyers
April 14
Insurance:"Anticipated Coronavirus Claims Scenarios Across Major Coverage Lines"
April 13 
Whitney Tilson: "Berkshire's Exposure To Business Interruption Insurance" (BRK)

And somewhat related:
May 6
Re/Insurance: "Berkshire Hathaway will write pandemic cover 'at the right price', Buffett says" (BRK)