8th Circuit denies COVID-related business income claim in first federal appellate ruling | Bricker & Eckler LLP

In a relatively concise ruling, the 8th Circuit U.S. Court of Appeals issued the first U.S. Appellate Court decision on insurance coverage for COVID-19 related claims. The 8th Circuit ruling affirmed that the insurance policy at issue did not cover loss of business income due to the COVID-19 pandemic and related government restrictions.

Oral Surgeons P.C. (OSPC) is an Iowa-based oral and maxillofacial surgical practice. In late March 2020, following the Iowa governor’s state of emergency declaration, OSPC halted all non-emergency procedures in their four offices. In May 2020, the state of emergency was lifted and OSPC was permitted to resume a regular schedule, following COVID-19 health and safety guidance from the Iowa Dental Board.

OSPC submitted a claim to their insurance provider, The Cincinnati Insurance Company (Cincinnati), under their policy’s business interruption and loss of income clause. OSPC asserted…

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