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Federal appellate courts have taken divergent paths in grappling with COVID-19 coverage cases, with some waiting to hear from state high courts, others consolidating the suits and still more issuing ruling after ruling in favor of insurers who say policies don't cover the economic stifling of a global pandemic.
An insurance company is suing convenience store chain QuikTrip Corp. for negligence, accusing employees at an Iowa store of selling gasoline to a man who allegedly threatened to use it to start a fire and then did so at an apartment complex across the street.
Evanston Insurance Co. shouldn't have to pay legal fees for a group of property managers that attempted to force a defense in an underlying $12.5 million lawsuit, a New York federal magistrate judge recommended, finding that the insurer did not act in bad faith when it stopped its defense.
Another appellate court has ruled against policyholders seeking coverage for COVID-19-related losses, with a Michigan panel finding Tuesday that government orders didn't cause physical loss or damage at a restaurant operator's property.
Convenience store chain Wawa Inc. asked a New Jersey state judge to let it amend its COVID-19 coverage lawsuit with the hopes of adding new information about the science of the coronavirus and how its policies have been drafted.