- July 8, 2021
- Posted by: Stratford Team
- Category: Business
The first appellate court to consider a COVID-19 business interruption claim has ruled in favor of the insurer holding that coverage for business losses resulting from the COVID-19 pandemic and related government orders is not triggered under a commercial property policy because there is no “physical loss” or “physical damage” to property.
In Oral Surgeons, P.C. v. The Cincinnati Insurance Company, No. 20-3211, Slip. Op. (8th Cir. July 2, 2021), the insured oral surgery practice stopped performing non-emergency procedures in late March 2020 after the governor of Iowa declared a state of emergency and imposed restrictions on dental practices because of the COVID-19 pandemic. The insured’s policy provided coverage for lost business income and extra expense sustained due to the suspension of operations “caused by direct ‘loss’ to property.” The policy defined loss as “accidental physical loss or accidental physical damage.”
The…
