As we approach the two-year anniversary of the COVID-19 impact, Policyholders must remain aware of a potentially approaching deadline. Many Policyholders tendered COVID-19-related claims under their First Party Property Insurance Policies ("Property Policies"), and many of these Property Policies contain "two-year suit limitation" provisions. Such provisions require that, if a Policyholder disputes a carrier's claim denial for a given loss, the Policyholder must commence a coverage action within twenty-four months of the onset of that loss.
Mid-March 2022 marks the two year anniversary of the original COVID-19 shutdowns. In the intervening time, the insurance industry has been faced with hundreds of billions of dollars in COVID-related losses. Carriers have denied the overwhelming majority of Property Policy claims – which has allowed them a preliminary basis for avoiding payments. But what the insurance industry really wants is a permanent pass.
With so much at stake, carriers will raise every possible argument in their effort defeat COVID-related claims. Suit limitation provisions will soon be front and center – with carriers seeking to set Mid-March as the time after which thousands of coverage actions should be time barred.
As with all insurance coverage disputes, no two COVID claims are exactly alike. Consequently, different Policyholders will have different bases for countering the insurance industry's anticipated suit limitation arguments. Nevertheless, Policyholders are well-advised to stay ahead of this curve.
If you have made a COVID-related claim, and that claim has been denied, you should immediately review your applicable Policies to ascertain whether they include a two year suit limitation. If so – and if you wish to litigate your claim denial – now is the time to analyze your options.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
