Insurance Coverage for Bankrupt Corporations
Many businesses forced to close due to COVID-19 have turned to insurance to recover resulting losses. Even in the best of times, businesses face myriad challenges, and insurance is an important backstop. For a struggling company, however, insurance may be a much-needed source of funds. Similarly, for those pursuing claims against a struggling company, insurance may be the best, if not only, source of any recovery.
In an article for Risk Management, Jason Rosenthal, principal in the Litigation & Dispute Resolution group, notes that with a surge of anticipated bankruptcy filings, both bankruptcy and non-bankruptcy attorneys need to be aware of how a bankruptcy affects insurance.