New COVID-10 Commerical Insurance Tactic Requests Refund of Policy Premium

This month’s Covid-19 commercial general liability insurance cases take a little different approach. In a case that appeared in front of the Eighth Circuit Court of Appeals last month, business owners argued commercial property insurers should refund a portion of premium payments to the insured. Two similar cases were filed and made more progress in California than in this Missouri case. The case alleges that due to COVID-19 restrictions, commercial businesses “drastically reduced miles driven, and therefore auto accident claims.” The business sought a refund of its insurance premium in response to these reductions in risk. The district court and Eight Circuit Court of Appeals said the premium complaint was linked to rates. Missouri has a process for rates complaints through the Department of Insurance. Read more about the case here.