Ryan Lapine recently spoke with Business Insurance on smoke damage claims. The following is an excerpt:
Business interruption insurance typically requires physical damage to trigger coverage, and smoke damage could be a contentious issue, said Ryan Lapine, Los Angeles-based partner at Venable LLP.
During the COVID-19 pandemic, insurers argued that a virus and a government shutdown order weren’t enough to trigger business interruption coverage, he said. With the exception of the North Carolina Supreme Court, “all courts, to my knowledge, have walked in lockstep with that analysis,” Mr. Lapine said.
“I would argue that smoke damage is physical damage. … It just raises the issue of whether or not the smoke is sufficient under the standards that have been argued for several years now to trigger coverage,” he said.
For the full article, click here.