Travelers, W.R. Berkley CEOs Sound Alarm Over Coronavirus Lawsuits, Workers’ Comp

During an earnings conference call Tuesday, the leader of Travelers insurance alerted listeners to the possibility that frivolous lawsuits by plaintiffs lawyers could slow down the economic recovery from COVID-19 shutdowns.

Alan Schnitzer, whose company reported net income of $600 million, including an $86 million pretax charge associated with the impact of COVID-19, also warned regulators and policymakers to think carefully about expanding workers’ compensation coverage by creating presumptions of compensability. In addition, on the topic of business interruption coverage, he issued another warning, essentially arguing that denting the wherewithal of insurers to pay claims by forcing retroactive coverage is a bad move going into hurricane season.