Hunton Insurance Recovery Blog

They say lightning never strikes the same place twice, but for two policyholders who were burglarized in back-to-back years, it did, and a simple paperwork mix-up may have cost them their insurance coverage.  Their complaint alleges that Lemonade, their insurer, unfairly denied claims from a 2025 burglary because receipts that had been submitted with a 2024 burglary claim were inadvertently submitted again.  

The complaint raises interesting questions about how insurers detect fraud and the appropriate approach when discrepancies are identified.  What responsibility do insurers have to further investigate and allow the policyholder to explain?  These questions will become increasingly important the more that parties rely on AI in connection with insurance claims, increasing the likelihood that potential errors blossom into coverage disputes.

The complaint can be found here.

The CDC reports that, as of the end of last week, the coronavirus disease had spread through China and to 31 other countries and territories, including the United States, which has now seen its first two related deaths. The public health response in the United States has been swift and includes travel advisories, heightened airport screening, and repatriation and quarantine of potentially infected individuals. Outside the United States, countries like China, Italy, and South Korea have implemented more severe measures to combat the disease. From smart phones to automobiles, coronavirus has major short- and long-term implications for public and private companies facing potentially significant supply chain disruptions, store and office closures, and other logistical issues. These business losses, however, may be covered by insurance. Below are several key insurance considerations for policyholders to contemplate when evaluating the availability of insurance coverage for coronavirus-driven losses.