An Appraisal of the Extent of Business Interruption Insurance Coverage in the Context of the Covid-19 Pandemic

Melda Taşkın

Makale detayları

An Appraisal of the Extent of Business Interruption Insurance Coverage in the Context of the Covid-19 Pandemic

Yazarlar:

Melda Taşkın

Yayıncı:

Istanbul University

Ana Başlıklar:

Environmental and Resources Law (Other)

Dergi:

İstanbul Hukuk Mecmuası Vol.82 Issue 1, pp.105-127

Belge Tipi:

Makale

Yayın Tarihi:

7/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001325591

pISSN:

2636-7734

Anahtar kelimeler:

Özet:

 Business interruption insurance covers against losses caused by an interference or interruption of business as a result of circumstances out of the hands of the policyholders, such as natural disasters, particularly fires, earthquakes, floods, or epidemic illnesses. As it is known, during the first wave of the COVID-19 pandemic, many businesses were forced to shut down operations except for online sales, caused by both the severe restrictions of the governments and also contagiousness of the virus. The business owners who could not operate for a long time and incurred a serious loss of earnings appealed to their insurers who provided coverage for business interruption losses depending on agreements that were signed before the pandemic. However, most of these applications were refused by insurers on the grounds that business interruption insurance policies provide coverage only for business interruption losses caused by physical damage. Accordingly, the extent of the business interruption insurance coverage, as well as the meaning and scope of the term physical damage, has been intensively discussed both in doctrine and also in court decisions after restrictions of the pandemic were lifted. On the other hand, it is a known fact that in many policies used in practice, the parties can add extension or exclusion clauses into the agreement. This study aims to both determine the coverage possible to be included in business interruption insurance policies, by considering the general insurance terms and conditions frequently used in practice, and also to solve the matter of whether it is possible to indemnify the losses related to business interruption caused by the restrictions and interferences of the COVID-19 pandemic.

 Business interruption insurance covers against losses caused by an interference or interruption of business as a result of circumstances out of the hands of the policyholders, such as natural disasters, particularly fires, earthquakes, floods, or epidemic illnesses. As it is known, during the first wave of the COVID-19 pandemic, many businesses were forced to shut down operations except for online sales, caused by both the severe restrictions of the governments and also contagiousness of the virus. The business owners who could not operate for a long time and incurred a serious loss of earnings appealed to their insurers who provided coverage for business interruption losses depending on agreements that were signed before the pandemic. However, most of these applications were refused by insurers on the grounds that business interruption insurance policies provide coverage only for business interruption losses caused by physical damage. Accordingly, the extent of the business interruption insurance coverage, as well as the meaning and scope of the term physical damage, has been intensively discussed both in doctrine and also in court decisions after restrictions of the pandemic were lifted. On the other hand, it is a known fact that in many policies used in practice, the parties can add extension or exclusion clauses into the agreement. This study aims to both determine the coverage possible to be included in business interruption insurance policies, by considering the general insurance terms and conditions frequently used in practice, and also to solve the matter of whether it is possible to indemnify the losses related to business interruption caused by the restrictions and interferences of the COVID-19 pandemic.

 Business interruption insurance covers against losses caused by an interference or interruption of business as a result of circumstances out of the hands of the policyholders, such as natural disasters, particularly fires, earthquakes, floods, or epidemic illnesses. As it is known, during the first wave of the COVID-19 pandemic, many businesses were forced to shut down operations except for online sales, caused by both the severe restrictions of the governments and also contagiousness of the virus. The business owners who could not operate for a long time and incurred a serious loss of earnings appealed to their insurers who provided coverage for business interruption losses depending on agreements that were signed before the pandemic. However, most of these applications were refused by insurers on the grounds that business interruption insurance policies provide coverage only for business interruption losses caused by physical damage. Accordingly, the extent of the business interruption insurance coverage, as well as the meaning and scope of the term physical damage, has been intensively discussed both in doctrine and also in court decisions after restrictions of the pandemic were lifted. On the other hand, it is a known fact that in many policies used in practice, the parties can add extension or exclusion clauses into the agreement. This study aims to both determine the coverage possible to be included in business interruption insurance policies, by considering the general insurance terms and conditions frequently used in practice, and also to solve the matter of whether it is possible to indemnify the losses related to business interruption caused by the restrictions and interferences of the COVID-19 pandemic.

 Business interruption insurance covers against losses caused by an interference or interruption of business as a result of circumstances out of the hands of the policyholders, such as natural disasters, particularly fires, earthquakes, floods, or epidemic illnesses. As it is known, during the first wave of the COVID-19 pandemic, many businesses were forced to shut down operations except for online sales, caused by both the severe restrictions of the governments and also contagiousness of the virus. The business owners who could not operate for a long time and incurred a serious loss of earnings appealed to their insurers who provided coverage for business interruption losses depending on agreements that were signed before the pandemic. However, most of these applications were refused by insurers on the grounds that business interruption insurance policies provide coverage only for business interruption losses caused by physical damage. Accordingly, the extent of the business interruption insurance coverage, as well as the meaning and scope of the term physical damage, has been intensively discussed both in doctrine and also in court decisions after restrictions of the pandemic were lifted. On the other hand, it is a known fact that in many policies used in practice, the parties can add extension or exclusion clauses into the agreement. This study aims to both determine the coverage possible to be included in business interruption insurance policies, by considering the general insurance terms and conditions frequently used in practice, and also to solve the matter of whether it is possible to indemnify the losses related to business interruption caused by the restrictions and interferences of the COVID-19 pandemic.

Makale detayları

An Appraisal of the Extent of Business Interruption Insurance Coverage in the Context of the Covid-19 Pandemic

Yazarlar:

Melda Taşkın

Yayıncı:

Istanbul University

Ana Başlıklar:

Environmental and Resources Law (Other)

Dergi:

İstanbul Hukuk Mecmuası Vol.82 Issue 1, pp.105-127

Belge Tipi:

Makale

Yayın Tarihi:

7/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001325591

pISSN:

2636-7734

Business Interruption Insurance

Business Interruption Loss

Physical Damage

COVID-19 Pandemic

Extent of Business Interruption Insurance Coverage

Disease Clauses

Denial/Prevention Of Access Clauses

Public Authority Clauses

Hybrid Clauses

Sayı

Makale detayları

Yazarlar: Melda Taşkın

Yayıncı: Istanbul University

Ana Başlıklar: Environmental and Resources Law (Other)

Dergi: İstanbul Hukuk Mecmuası Vol.82 Issue 1, pp.105-127

Belge Tipi: Makale

Yayın Tarihi: 7/2024

Belge Dili: İngilizce

Document ID (Org No.): 2001325591

pISSN: 2636-7734

Sayı

Yazarlar:

Melda Taşkın

Yayıncı:

Istanbul University

Ana Başlıklar:

Environmental and Resources Law (Other)

Dergi:

İstanbul Hukuk Mecmuası Vol.82 Issue 1, pp.105-127

Belge Tipi:

Makale

Yayın Tarihi:

7/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001325591

pISSN:

2636-7734