Courts Favor Insurers in COVID-Related BI Lawsuits

February 8, 2022 | Alan S. Rutkin | Insurance Coverage

The range of issues covered in this column over the years would not be complete if I did not discuss COVID-related insurance claims. When addressing these claims, courts throughout the country have been true to policy language. Courts have enforced policy terms tying coverage to “direct physical damage” and upheld insurers’ denials.

A good context for considering these issues is a recent decision from the prominent U.S. Court of Appeals for the 2nd Circuit, 10012 Holdings v. Sentinel Insurance. There, the issue was whether the insured’s business losses were covered where closure did not result from physical damage to its property or the neighbors’ adjoining property.

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This article appeared in the March 2022 issue of Best’s Review®.

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