Laurie LaPalme has been quoted in the article “Brokers Face Heightened Risk of COVID-related Litigation,” published by Insurance Business Magazine.
Writes Bethan Moorcraft: “The coronavirus pandemic has triggered a large uptick in class action lawsuits against insurance companies. Many of the cases revolve around coverage disputes and the exclusionary language in most insurance policies around ‘pandemic’ and ‘virus’.”
She also notes that “insurance brokers are not immune from this trend.”
Says Laurie: “As the cases against insurers get dismissed, the plaintiffs will amend their pleadings and will look for other deep pockets. [They will look for those] deep pockets in the insurance broker community because brokers have strong and significant E&O coverage, and sophisticated plaintiffs’ bar know that. […] The main area of claim will be failure to advise on potential risks regarding pandemics, and the failure to advise on how the business interruption coverage actually worked in their policy.”
Laurie goes on to provide advice to brokers. Read the full article here.