Insurance, lawsuit protection
The Florida House of Representatives organizational session, November 17, 2020. Courtesy, The Florida Channel
The winners of the November 3 election, save for a couple handfuls who tested positive for the coronavirus and were excused, were sworn into office during the Florida Legislature’s organizational session on November 17. The virus, of course, was top of mind, not only with the enhanced personal protective measures for legislators and guests, but also the various related budget and policy challenges lawmakers will face when they begin committee weeks on January 11 in preparation for the March 2, 2021 start of session.
New members of the Florida House of Representatives are sworn-in, November 17, 2020. Courtesy, The Florida Channel
After the ceremonies, both House Speaker Chris Sprowls (R- Palm Harbor) and Senate President Wilton Simpson (R-Trilby) publicly endorsed the idea of virus liability protection for Florida businesses. They made clear that if a business is following CDC health protocols to protect its employees and customers, there should be limits on lawsuits, while allowing those who don’t to be held accountable. Governor DeSantis has previously stated his support for liability protection. Last week he extended his previous ban on business shutdowns, noting “Floridians should not be prohibited by local governments from working or operating a business.”
The National Council on Compensation Insurance (NCCI) is out with its updated list of COVID-19 court cases that have potential implications on workers’ compensation insurance. Among the 11 cases is a Florida case. A family nurse practitioner who contracted COVID-19 sued her alleged employer, a healthcare facility and its related business entities, for negligence. The complaint asserts, in part, that the alleged employer did not warn of the presence and/or potential for COVID-19 on the work premises, did not provide staff and patients with personal protective equipment, and did not adhere to health and safety guidance recommendations. The lawsuit also includes a count of battery and intentional infliction of emotional distress against a supervisor, a physician, who blew “breath in the (nurse practitioner’s) face while experiencing COVID-19 symptoms.”
Meanwhile, some Florida businesses are continuing to sue their insurance companies unsuccessfully for business interruption claims arising from the pandemic. Two cases in Hillsborough County court were recently dismissed. Both judges utilized “plain reading” standards noting that “Florida law supports a legal conclusion that the mere presence of COVID-19 on business premises does not constitute direct physical loss or damage. Without direct physical loss or damage, there is no covered cause of loss.”
Congress continues its work to bring insurance coverage to future pandemics. The House Financial Services Subcommittee held a hearing on the proposed Pandemic Risk Insurance Act of 2020. The Republican chair said it’s not reasonable to expect the insurance industry to shoulder pandemic costs and the Democratic sponsor of the bill said yes it is, with a federal backstop. Although the bill’s backstop has grown from a $500 billion to a $750 billion cap, the industry testified that it would still be outpaced by losses. Lloyd’s of London recently announced that the global insured losses from the pandemic will exceed the previous market estimate of $107 billion.
LMA Newsletter of 11-30-20
