The California Court of Appeal has ruled that a Superior Court judge erred in refusing to allow a restaurant chain a chance to amend its complaint to set forth claims for "communicable disease event" coverage.
A Texas jury found presence of SARS-CoV-2 virus on property of Baylor College of Medicine caused physical loss or damage and economic loss, triggering coverage under BCM’s commercial property insurance program. Jury awarded BCM over $48 million following three-day trial.
The Fifth Circuit has ruled in a Louisiana case that income that a New Orleans jewelry chain lost while being closed due to pandemic orders were not the result of "direct physical loss."
U.S. Court of Appeals for the Second Circuit, September 15, 2022 - Fireman’s Fund Ins. Co. v. Onebeacon Ins. Co., 2022 U.S. App. LEXIS 25863 - Fireman’s.
There is a clear nationwide trend of federal courts disposing of COVID-19 business interruption suits. Insureds are not clearing their initial burden to establish direct physical loss.