‘No Physical Loss’: Restaurants’ COVID-19 Business Losses Not Covered by Their Property Insurance

Decide Britt Grant’s impression for the U.S. Court of Appeals for the Eleventh Circuit highlights how badly matters have absent for cafe owners suing their insurers seeking business interruption protection for shutdowns prompted by COVID-19 and the crisis reaction.

“Since the beginning of the COVID-19 pandemic, enterprises throughout the nation have sought to recoup losses from their insurers. But a popular dilemma with that strategy has been that the businesses’ insurance coverage insurance policies protect towards only ‘direct actual physical decline of or destruction to’ business residence,” Grant claimed. “So far, each individual federal and condition appellate court docket to take into account the concern (including this a single) has held that the existence of COVID-19 leads to a business’s residence intangible damage, fairly than immediate actual physical harm. That implies COVID-19-associated fees and losses are not lined.”