The Houston Rockets recently sued their insurance provider for failing to provide business interruption compensation under the team's $400 million insurance policy. In doing so, they are believed to be one of the first NBA teams to file a lawsuit to recover losses arising from COVID-19.
Posts tagged "COVID-19"
Last month, two patients from Heartis Arlington Assisted Living tested positive at a hospital for COVID-19. Despite the positive test results, however, the hospital failed to inform Heartis Arlington Assisted Living that two of their residents had been infected with COVID-19. It was only until a resident's family member informed Heartis Arlington Assisted Living that they had any knowledge of the positive test results, long after several other senior residents had been exposed to the virus.
Texas nursing facilities have the second-highest total number of infection-related citations over the past three years. Texas also had the 11th-highest rate of citations among all states. According to regulatory records, inspectors found problems at more than 80% of Texas nursing homes in the past three years.
Lawsuits are being filed across the country, including in Texas, over insurance companies denying claims for business interruption arising from the coronavirus pandemic. Business interruption insurance typically covers the loss of income that a business suffers due to a disaster.
The Food and Drug Administration, or "FDA," is cautioning consumers against the use of COVID-19 tests designated for use at home. The FDA states that it has not authorized any form of COVID-19 diagnostic tests for at-home use, nor has it endorsed any prevention or treatment claims made by U.S. companies. Further, the FDA has actively prohibited many companies from marketing their at-home test kits in an effort to safeguard the public, including Austin, Texas' Everlywell, and San Francisco, California's Nurx.
In response to growing concerns of community spread of the coronavirus (COVID-19), sports organizations, local schools, and even the Houston Livestock Show & Rodeo have ceased operations for the foreseeable future. As businesses consider the human and health impact of this global pandemic, a common question raised is how any business interruptions and related financial losses may be covered by their insurance policies. Whether your business has drastically experienced economic loss or has temporarily closed its doors due to city-wide closures or travel restrictions, you may find relief from your insurance coverage provider.