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 Commercial Litigation 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.