direct physical loss News

Two More Circuit Courts Reject COVID-19 Business-Interruption Claims

The 2nd Circuit Court of Appeals ruled Monday that the coronavirus did not cause a direct physical damage or loss to a New York City art gallery — issuing the latest in a long series of defeats for policyholders seeking …

Contrary Judges Resist ‘Herding Behavior’ for COVID-19 Claims

Insurers continue to prevail in the vast majority of lawsuits that seek business-interruption coverage for income lost during COVID-19 shutdowns, but a small minority of state court judges are taking a contrary view. On Monday, Cook County Circuit Court Judge …

Ruling May Portend Bitter End for COVID Business Interruption Claimants

A federal appellate court ruling that dismissed a dental practice’s COVID-19 business interruption claim might be the beginning of the end for policyholder arguments that income lost because of government shutdowns should be recovered through commercial property insurance policies. The …

Restaurants Ask N.C. Supreme Court to Bypass Appeals Court in COVID Win

A group of North Carolina restaurants and an industry group are asking the North Carolina Supreme Court to bypass the Court of Appeals and take up an insurer’s appeal of a trial court decision that found coverage was owed for …

Conn. Judge Rules No Coverage Owed for Wholesaler’s $100M in COVID Losses

A Connecticut judge ruled that The Hartford did not owe coverage to designer footwear wholesaler Marc Fisher for more than $100 million in losses caused by COVID-19 business closures. Waterbury Judicial District Judge Barbara N. Bellis ruled that government orders …

N.H. Hotel Group Chalks Rare Win in Pandemic-Related Business Interruption Lawsuit

CONCORD, N.H. (AP) — A judge has ruled in favor of a group of hotels whose owners sued their insurance carriers over lost business during the coronavirus pandemic. Businessman Mark Stebbins of Schleicher & Stebbins Hotels, LLC, one of the …

In Rare Policyholder Win, Texas Judge Refuses to Dismiss Theater Chain’s COVID Lawsuit

A federal judge in Sherman, Texas on Wednesday ruled against an insurer that sought to dismiss a $500 million COVID-19 business-interruption lawsuit by the nation’s third-largest chain of movie theaters. The decision broke a month’s-long losing streak for policyholders seeking …

Ohio Supreme and 8th Circuit Mull Whether COVID Can Cause Direct Physical Loss

Two appellate courts took steps this week toward answering a key question that may seal the fate of some 1,500 lawsuits seeking insurance coverage for COVID-19-related business-interruption losses: Does the presence of the SARS-CoV-2 virus or people infected with it …

Judge Rules in Favor of 3 Policyholders With COVID-19 Claims in Consolidated Case

A federal judge denied Society Insurance’s motions to dismiss three “bellwether” lawsuits filed by hospitality businesses that were denied coverage for revenue lost because of COVID-19 public health orders. U.S. District Judge Edmond Chang in Chicago, who was assigned a …

COVID-19 Rulings – Mostly Insurer Wins – Moving to Appellate Courts

A wave of litigation over business-interruption losses caused by COVID-19 shutdown orders has started splashing into the appellate courts. Appeals of trial court decisions in at least 11 lawsuits have been filed so far, all but one of them by …