Here is a LINK to a blog post reporting on what is noted to be the first substantive decision across the nation on a Covid-19 Business Interruption Coverage question.
The decision was handed down by a Michigan state court on July 1, 2020 and favored the carrier, which was a division of Donegal Insurance, by dismissing the Complaint as a matter of law.
According to the blog post, the court in Michigan found that “direct physical loss of or damage to property” requires mor than mere loss of use or access; rather, some tangible alteration or damage that impacts the physical makeup of the premises is required in order to implicate the coverage.
According to other articles on the case, the matter arose out of Donegal’s denial of $650,000 of business interruption claims by a restaurant.
Interestingly, the decision of the court was issued verbally. A link to the Youtube post with the decision is included in the blog post that can be accessed at the above Link.
I send thanks to my contacts at Tuscarora-Wayne Insurance Company for bringing this decision to my attention.
CUMMINS LAW is an insurance defense firm that, in addition to defending all sorts of liability claims, also handles insurance coverage questions, including Covid-19 business interruption coverage questions. Cummins Law can be contacted at 570-319-5899 or by emailing dancummins@CumminsLaw.net.