Scott Seaman Discusses Wisconsin Supreme Court Ruling that Continues a Series of Appellate Decisions Favorable to Insurers in COVID-19 Business Interruption Claims

Scott Seaman, Hinshaw partner and Chicago-based co-chair of Hinshaw's Global Insurance Services Practice Group, discussed with Law360 a recent decision by the Wisconsin Supreme Court that ruled an insurer is not responsible for covering business losses stemming from the COVID-19 pandemic. The case adds to the burgeoning series of rulings favoring insurers in pandemic-related business interruption claims.

Seaman stated that the ruling had "slammed the door" on the restaurants' attempt to obtain coverage for COVID-19 losses and that the lack of any direct physical loss or damage "marked the death knell" of these types of claims. "The COVID-19 coverage wars are far from over, but policyholders are running out of arguments and jurisdictions," Seaman said. He added that the policyholders also have not gotten traction with their argument that federal courts have not been interpreting state contract law properly.

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"Wis. Justices Say COVID-19 Losses Not Covered" was published by Law360 on Jun 1, 2022.