Portion of COVID-19 Claim Survives Motion to Dismiss

    While the insured failed to demonstrate direct physical loss, Crisis Event coverage was still possible. SJP Investment Partners LLC v. Cincinnati Insurance Company, 2021 U.S. Dist. LEXIS 162612 (N.D. Ala. Aug. 27, 2021).     The insured owned a hotel in Birmingham. The state’s public health orders limited operations and caused temporarily closures … Read more

Pennsylvania Trial Court Denies Insurer’s Motion to Dismiss COVID-19, Business Interruption Claim

    The insured successfully alleged that the presence of virus particles in its gym constituted a loss, allowing it to survive the insurer’s Motion to Dismiss the business interruption claims. Brown’s Gym, Inc. v. The Cincinnati Ins. Co., No. 20-3113 (Pa. Ct. Cm Pl. July 13, 2021).      The insured contended that virus … Read more

Eighth Circuit Affirms Dismissal of COVID-19, Business Interruption Claim

    In what appears be the first federal appellate decision on COVID-19 business interruption claims, the Eighth Circuit affirmed the district court’s dismissal of the insured’s claim based upon closure due to the pandemic. Oral Surgeons, P.C. v. Cincinnati Ins. Co., 2021 U.S. App. LEXIS 19775 (8th Cir. July 2, 2021).     After … Read more

Court Denies Motion to Dismiss Retailer’s COVID-19, Business Interruption Claim

    The insured furniture retailer survived a motion to dismiss its business interruption claim after government orders caused disruption of the insured’s operations due to COVID-19. Susan Spath Hegedus v. Ace Fire Underwriters Ins. Co., 2021 U.S. Dist. LEXIS 88041 (E.D. Pa. May 7, 2021).     Plaintiff operated two locations in California. Plaintiff … Read more

Summary Judgment Granted to Hotel Chain in COVID-19 Claims

        A New Hampshire Superior Court granted a hotel chain summary judgment on its suit for coverage due to losses caused by COVID-19. Schleicher & Stebbins Hotels, LLC v. Starr Surplus Lines Ins. Cos., No. 217-2020-00309 (N.H. Super. Ct. June 15, 2021).      Government orders were issued restricting the operation of … Read more

Claims that COVID-19 Present on Property Survive Motion to Dismiss

    Plaintiffs successfully argued against a motion to dismiss by alleging COVID-19 was present on their premises and required repairs and alterations to their properties. Legacy Sports Barbershop LLC v. Cont’l Cas. Co., 2021 U.S. Dist. LEXIS 102545 (N. D. Ill. June 1, 2021).      Plaintiffs operated a barbershop, barbering school and hair … Read more

Motion to Dismiss Beauty Salon’s COVID-19 Claim Denied

    The insured beauty salon’s claim for losses caused by shutdown orders due to COVID-19 survived the insurer’s motion to dismiss based upon a Communicable Disease endorsement. Treo Salon, Inc. v. West Bend Mut. Ins. Co., 2021 U.S. Dist. LEXIS 88577 (S.D. Ill. May 10, 2021).      The insured’s policy included an endorsement … Read more

COVID-19 Claim Survives Insurer’s Motion for Judgment on the Pleadings

    The Federal District Court for the Easter District of Texas rejected the insurer’s motion for judgment on the pleadings on the insured’s claim for losses due to the coronavirus. Cinemark Holdings, Inc. v. Factory Mut. Ins. Co., 2021 U.S. Dist. LEXIS 90124 (E.D. Tex. May 5, 2021).      Cinemark operated the nation’s … Read more

Restaurant’s COVID-19 Claim Survives Motion to Dismiss

    The insurer’s argument that the insured restaurants’ claim for business interruption due to COVID-19 should be dismissed because there was no physical damage to the structure was rejected by the federal district court in Alabama. Serendipitous, LLC v. Cincinnati Ins. Co., 2021 U.S. Dist. LEXIS 86998 (N.D. Ala. May 6, 2021).     … Read more