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On Thursday, a complaint was filed in the Eastern District of New York by Magellan Health Inc, Merit Health Insurance Company, and Magellan RX Management
May.24.2021
Courts Dismiss COVID-19 Business Interruption Claims
On May 13, 2021, the district court for the Northern District of Georgia granted American Family Insurance Company’s and Midvale Indemnity Company’s motion to dismiss a COVID-19 business interruption claim filed by the operators of two barbeque restaurants. The court concluded that the plain meaning of the phrase “direct physical loss” requires that there be “actual, physical damage to the covered premises” and the plaintiffs failed to allege any change to the physical condition of property due to COVID-19 closure orders. Order at 11. The court further found that the policy’s unambiguous virus exclusion bars coverage because the plaintiffs “claim no losses that were not caused, at least indirectly, by the virus.”
May.18.2021
Courts Dismiss COVID-19 Business Interruption Claims
On May 7, 2021, the district court for the Northern District of Illinois granted Westfield National Insurance Company’s motion to dismiss a Chicago bakery and a salon’s complaint alleging coronavirus-related business interruption losses. Determining the virus exclusion unambiguously bars coverage for loss indirectly caused by the coronavirus, the court found meritless the plaintiffs’ argument that the government closure orders, rather than the virus, caused their losses. Order at 7-8. Including the virus exclusion within the policy “undercuts” any argument “that Westfield unjustifiably denied” their claims.
Id. at 10.
On May 10, 2021, the Circuit Court of Cook County, Illinois granted with prejudice Motorists Commercial Mutual Insurance Company’s motion to dismiss a COVID-19 business interruption claim filed by the operator of automobile dealerships and repair shops. The court found that business in