STORY FROM: COVID-19 Litigation Report

Insurer Disclaims Obligation to Pay for COVID-19 Canceled Events Beyond Policy Limit

HOUSTON — U.S. Specialty Insurance Co. (USSIC) has asked a Texas federal court to rule that it is not obligated to pay for a policyholder’s COVID-19-related event cancellations beyond the $150 million policy limit.

In a May 27 complaint filed in the U.S. District Court for the Southern District of Texas, USSIC maintains that Gartner Group Inc. may not increase the policy’s aggregate limit of indemnity, nor can it secure additional coverage where it was aware of circumstances — such as the COVID-19 pandemic — that may lead to a claim.

Gartner is a global research and advisory company that ...

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Norton Rose Fulbright US LLP

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