In that case, the court’s unanimous decision that a pediatric dental practice was not entitled to coverage for COVID-19-related losses, because the loss of business and revenue was the result of government shutdown orders; and not the result of tangible damage required by the insurer’s policy.
In light of this decision, numerous businesses in Washington and around the country have started dismissing their own cases for COVID-19 insurance coverage, which if not checked, could embolden insurance providers to deny future claims. This could also have a chilling effort on the policyholders who may delay or not file a claim for losses, in fear that their claim will be vigorously challenged by the insurer and they could potentially be liable for attorneys fees and costs should the policyholder lose his/her case in court.
Records show that Federal district courts all over the country have already tossed or rejected a significant portion of the COVID-19 insurance coverage lawsuits filed since the beginning of the pandemic. Cases that are still pending are not expected to receive favorable treatment in light of the Washington Supreme Court’s recent decision.
