Insolvency is a potential source for COVID-19-related D&O claims, as economists are predicting a wave of bankruptcies as a consequence of the pandemic. There are many ways stakeholders could go after directors following insolvency. (Photo: Eag1eEyes/Shutterstock)
With reduced economic activity during the COVID-19 pandemic, liability claims have experienced several positive trends. However, given the lag in reporting and uncertainty, future claims cannot be ruled out, as claims patterns have changed with lockdowns and government measures to combat the virus.
Of course, not every sector has gone into hibernation. Many, such as food and online retail, for example, are largely unaffected. In addition to COVID-19-related claims, insurers continue to face claims from unrelated risks. For example, this year has already seen large claims from U.S. riots, storm damage in North America, and large fire and shipping incidents.
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