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

Insureds Survive Motion to Dismiss Civil Authority Claim

    After suffering business losses due to a hurricane, the insured’s Civil Authority claim survived the insurer’s motion to dismiss. Pathology Lab. v. Mt. Hawley Ins. Co., 2021 U.S. Dist. LEXIS 145129 (W.D. La. Aug. 3, 2021).      Hurricane Laura devastated Lake Charles, Louisiana causing severe damage to the insured property as well … Read more

No Interlocutory Appeal of Denial of Motion to Dismiss Business Interruption Claims

    After denying Society Insurance’s motions to dismiss business interruption claims, the court rejected Society’s motion to certify the order for an interlocutory appeal under 28 U.S.C. Sec. 1292 (b). In re Soc’y Ins. Co. COVID-19 Bus. Interruption Protection Insurance Litigation, 2021 U.S. Dist. LEXIS 111217 (N.D. Ill. June 15, 2021).     Plaintiffs … 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

Civil Authority Claim Survives Motion to Dismiss

    The Rhode Island Superior Court denied the insurer’s motion to dismiss a claim under Civil Authority coverage related to closures of business due to COVID-19. Atwells Realty Corp. v. Scottsdale Ins. Co., 2021 R.I. Super. LEXIS 40 (R.I. Super. Ct. June 4, 2021).      Atwells operated a nightclub. Executive Orders issued in … 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

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

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

Claim for Business Interruption Based on Government Orders Precluding Use of Property Survives Motion to Dismiss

    The court found that the insured hair salon and barbershop plausibly alleged an entitlement to coverage for lost business income when the government orders restricted use of the property as intended. Seifert v. IMT Ins. Co., 2021 U.S. Dist. LEXIS 103420 (D. Minn. June 2, 2021).      Plaintiff’s business was ordered to … Read more