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Insurers' COVID-19 Notepad: What You Need to Know Now (Week of May 24) | All Alerts & Newsletters


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.” ....

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Business Insurance, Rent Lawsuits Mostly Shot Down


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GreenStreet Cafe’s lunchtime rush had just ended on a recent afternoon, but the clamor of dishes in the kitchen hadn’t ceased. Business has finally picked up at the popular eatery in Miami’s Coconut Grove, known for its red velvet outdoor couches, a place where athletes and artists have dined over the past 30 years.
Still, owner Sylvano Bignon is heated.
A judge in March dismissed his lawsuit against GreenStreet’s insurers, which refused to pay for pandemic-related losses. Shutdowns and other restrictions cost him $2.5 million, Bignon said, and he had been hoping to get $1 million from the insurer. But because the owner’s insurance only covered “physical loss or damage,” the judge ruled, the Covid claim did not apply. ....

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