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Policyholders With Endorsements for Diseases Survive Motions to Dismiss COVID-19 Claims
While insurers continue to win four out of five cases in early rounds, in the past month two property owners with policies that contained endorsements specifically providing coverage for diseases survived motions to dismiss their COVID-19 business interruption claims.
On Thursday, the Stark County Court of Common Pleas in Ohio denied State Automobile Mutual Insurance Co.’s motion to dismiss a lawsuit filed by the owners of Sylvester’s North End Italian Grille in North Canton seeking damages for lost income after being forced to close its dining room because of the COVID-19 pandemic. Judge Taryn L. Heath cited an endorsement in the policy that specifically added coverage for income lost because of “contagious or infectious disease.”
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