Court Finds Insurance Policies Are Not Ambiguous as to ‘Physical Loss’ Requirement and Dismisses Plaintiffs’ COVID-19-Related Damages Claims

BVLaw
Court Case Digests
February 17, 2021
7011 Hotels and Motels
721110 Hotels (except Casino Hotels) and Motels
economic damages & lost profits
policy, insurance, loss of business, coronavirus, COVID-19, business interruption, physical loss, civil authority

MIKMAR, Inc. v. Westfield Ins. Co.
2021 U.S. Dist. LEXIS 29591
US
Federal Court
Ohio
United States District Court
Calabrese

Summary

In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants the defendant insurance company’s motion to dismiss plaintiffs’ complaint seeking coverage for lost business income under their insurance policies. Plaintiffs operated a hotel and adjacent banquet and catering facility. In ruling against the plaintiffs, the court found the virus did not perceptibly harm the properties and the policies included a virus exclusion that prevented coverage of business losses.

See Also

MIKMAR, Inc. v. Westfield Ins. Co.

In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants the defendant insurance company’s motion to dismiss plaintiffs’ complaint seeking coverage for lost business income under their insurance policies. Plaintiffs operated a hotel and adjacent banquet and catering facility. In ruling against the plaintiffs, the court found the virus did not perceptibly harm the properties and the policies included a virus exclusion that prevented coverage of business losses.