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ARTICLE · 11 DECEMBER 2020

Courts Find Coverage For COVID-19 Business Interruption Losses

McCarter & English
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Policyholders are hailing two recent victories in their pursuit of insurance coverage for COVID-related business interruption losses.

United StatesInsurance

Policyholders are hailing two recent victories in their pursuit of insurance coverage for COVID-related business interruption losses. A North Carolina court granted a policyholder summary judgment that a commercial property insurance policy covers business interruption losses resulting from COVID-related government shutdown orders. Meanwhile, a Florida federal court determined a "virus exclusion" does not preclude a policyholder from pursuing insurance for COVID-related business interruption loss. These decisions clearly reject the insurance industry's self-serving mantra that COVID-related losses are not covered by insurance.

In North State Deli, LLC v. Cincinnati Insurance Co., No. 20-CVS-02569, filed in North Carolina Superior Court, the operators of sixteen restaurants brought a declaratory judgment action against their insurer for its refusal to cover losses suffered as a result of the coronavirus pandemic and related government shutdown orders, stay-at-home

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