Thursday, September 1, 2016

Interpreting an Insurance Clause: Does it Cover Damages from Zika?

If you are looking for a problem ripped from the headlines, consider this, covered on the Carlton Fields blog. The Centers for Disese Control and Prevention (CDC) has warned pregnant women to stay away from the popular Wynwood section on Miami.

The presence of infected mosquitoes and the publicity surrounding the CDC’s warning are likely to have a devastating effect on Wynwood’s outdoor cafes, walking tour companies, art galleries and other businesses that rely on a steady stream of foot traffic. Most of these businesses are insured by commercial property or “all-risk” insurance policies that provide (among other things) coverage for business interruption. Other tourist-dependent businesses have been shut down by natural disasters, such as Sandy and Katrina, and many of them were reimbursed by their insurers. Can a business owner in Wynwood look to her business interruption coverage to make up the economic losses caused by a mosquito-borne pestilence?

The answer is probably “no.”

The posting includes typical insurance clauses and a good analysis. You can access it here.


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