Insurance,
Civil Litigation
Aug. 18, 2020
Relevance of rare plaintiff victory in virus litigation is disputed
Most judges who have ruled have found in favor of insurers who say the term "physical loss or damage" means an actual alteration of the premises and not an interruption caused by a pandemic or civil authority shutdown. However U.S. District Judge Stephen R. Bough of the Western District of Missouri said policyholder's argument that the term "physical loss or damage," includes a loss caused by a pandemic is "plausible."





In what is believed to be the first significant victory for policyholders seeking COVID-19-related business interruption coverage, a federal judge in Missouri denied an insurer's motion to dismiss a class action brought by a group of hair salons and restaurants, claiming their insurance policies were unfairly denied during the pandemic.
Judges hearing hundreds of business interruption insurance lawsuits throughout the nation are grap...
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