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Courts siding with insurance firms over business interruption claims | Business

A growing number of U.S. courts are ruling against employers who’ve filed insurance claims for business interruption coverage stemming from government-ordered coronavirus shutdowns.

The Insurance Information Institute reports insurers have won more than a dozen cases since May, with judges ruling that the policies only kick in if a property sustains physical damage. The business owners had argued that the coverage should have started when local or state governments issued stay-at-home orders that hampered their ability to operate.

A couple of Charleston-area cases are still pending in federal court. Black Magic Cafe says its losses started on March 17, when Gov. Henry McMaster ordered a temporary halt to dine-in services at South Carolina restaurants.

The historic Calhoun Mansion at 10 Meeting St., now known as The Williams Mansion, sued its insurer after a McMaster executive order shut down museums.



Charleston cafe takes on insurance firm in fight over coronavirus claims

A bill that would have required insurance carriers to cover coronavirus-related business losses — co-sponsored by Sen. Sandy Senn, a Charleston Republican, and Sen. Marlon Kimpson, a Charleston Democrat — was introduced in the S.C. Statehouse in April but went nowhere.

Recent court rulings indicate the local cases might be a losing cause.

For example, Judge Thomas Thrash last week dismissed a federal lawsuit brought by restaurant in Georgia, ruling that a government stay-at-home order did not cause the business to sustain direct physical loss of or damage to its insured property or surrounding premises.



Owner of Charleston's historic Calhoun Mansion suing insurer over COVID-19 claims

Similarly, a U.S. District Court judge in Florida last month dismissed a trade show display company’s claims, saying “the plain language of the policies reflect that actual, concrete damage is necessary.”

And in another ruling in California last month, Judge Cathy Ann Bencivengo ruled against a pair of barbershops, stating: “Most courts have rejected these claims, finding that the

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UK mortgage approvals hit 13-year high, as firms warn of tough times – business live | Business

A Greggs bakers store in Cardiff, south Wales, at the start of the lockdown

A Greggs bakers store in Cardiff, south Wales, at the start of the lockdown Photograph: Geoff Caddick/AFP via Getty Images

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

A swathe of UK companies are reporting today that Covid-19 continues to hurt their businesses, more than six months after the UK first imposed restrictions to battle the pandemic.

High street baker Greggs has warned that staff faced reduced hours, and potentially job cuts, as it tries to cut its employment costs.

Greggs, famous for its steak bakes, sausage rolls and new vegan offerings, reports that like-for-like sales in September are only 76.1% of the 2019 levels (an improvement on a ‘slow’ August).

With the government’s furlough scheme wrapping up in a month (replaced by a less generous wage subsidy package), Greggs says it must make cuts:


With business activity levels remaining below normal for the foreseeable future we must change the way we work to be as productive and flexible as we can in order to protect as many jobs as possible for the long term. We have completed a review of our activity and requirements in every part of the business and are now proposing a series of changes which are the subject of a collective consultation with union and employee representatives.

Our aim is to minimise the risk of job losses by negotiating reduced hours in our shops and we will update on the outcome of the consultation when concluded.

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Newcastle based Greggs say they plan to cut staff hours to “minimise the risk of job losses”.

This is when the furlough scheme ends next month.

The chain say though, sales have picked up over the past month as it continues its recovery following

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