As businesses continue to navigate challenges posed by the COVID-19 pandemic, questions surrounding contractual obligations, force majeure clauses, and business interruption insurance remain at the forefront of our discourse. Supply chain shortages remain an ongoing concern for retail and service providers across the country, leading many businesses to consider not only whether they can seek relief from performance through force majeure clauses, but also whether these disruptions could trigger business interruption insurance.
This program will examine the intersection of force majeure and business interruption insurance in the time of COVID-19. The discussion will examine the circumstances under which a party may terminate or fail to perform without liability due to the occurrence of a force majeure triggering event, with a focus on recent developments in the law related to COVID-19. The discussion will also delve into the question of whether the COVID-19 virus causes “direct physical loss” to an insured business, thus triggering coverage under a commercial business interruption policy of insurance.
Participants will gain an understanding of recent developments in the law, the hurdles businesses face when attempting to successfully invoke force majeure or invoke a commercial business interruption insurance policy, and ideas for how to navigate these obstacles in the context of the pandemic.