In this article the authors address insurance protection from securities liabilities arising from the COVID-19 pandemic. They discuss seeking improvements and avoiding problems during underwriting; proactive steps when restrictive terms cannot be avoided; and best practices for securing coverage.

With a new year and the introduction of multiple vaccines, there is much hope that the end of the COVID-19 pandemic is in sight. Nevertheless, the pandemic will have wide-ranging consequences far beyond its end date.

For businesses, these consequences already have included, and will continue to include, exposure to coronavirus-related securities liabilities. Indeed, in 2020, there were more than 20 class-action lawsuits relating to COVID-19. These suits have asserted varying claims, but have included allegations that the defendants failed to disclose pandemic-related risks, failed to take proper precautions to prevent pandemic-related losses, or made misrepresentations regarding anticipated developments resulting from COVID-19.

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