Dennis Windscheffel Quoted by Texas Lawyer on Potential Growth in Litigation over Pandemic-Related Insurance Claim Denials

Texas Lawyer has quoted Akin Gump litigation senior counsel Dennis Windscheffel in its “Texas Takeaways” article “Business Interruption Claim Eruption, Pt. II.” The article looks at how litigation over insurance claim denials amid the coronavirus pandemic is likely to grow and potentially evolve.

Even as the initial wave of litigation over these claim denials continues to swell, Texas Lawyer reports that a second wave could be coming behind it.

“If state legislatures actually move forward with contemplated laws requiring insurance carriers to cover COVID-19 related business income losses, we almost certainly can expect a second wave of litigation regarding the constitutionality of these laws,” said Windscheffel.

With that in mind, Windscheffel offered some suggestions for anyone considering bringing such claims, including:

• Closely monitor all actions that have been (and continue to be) filed.
• Thoroughly research the most current analogous cases.
• Carefully think through possible interpretations that a court could apply to the language typically found in the relevant business interruption coverage provisions and related exclusions.
• Get ahead of planning for the potential state legislation and ensuing constitutional challenges.

Windscheffel also advised assessing the full scope of relevant issues, including all the different avenues to—and arguments for—coverage that may be available to the policyholder. In addition, he said providing prompt notice of any COVID-19 related losses “will ensure that you preserve all of your rights.”