A COVID-19 related business interruption dispute against a Zurich Insurance Group Ltd. entity should not be rejected as the insurer's policy provides coverage for physical loss or damage caused by microorganisms, including viruses, says a children's clothing retailer, arguing against Zurich's proposal to dismiss the case.
New York-based America & # 39 ;s Kids LLC, which operates 18 children's clothing stores, filed a lawsuit against Zurich in June, claiming business interruption coverage due to the forced closure of its stores due to the pandemic.
It sought coverage from Zurich's insurance group unit Zurich American Insurance under its $ 12,750,000 full-risk insurance policy, which included specific business breakage coverage, according to the proposal filed Friday in U.S. District Court in Chicago in America & # 39 ;s Kids , LLC v Zurich American Insurance Co.
"According to Zurich's story, this case is comparable to a mixture of others
" But even a brief review of the policy and the specific allegations of the complaint show that this case is different "because unlike those cited of Zurich, the coverage specifically refers to "microorganisms", including viruses as the cause of "direct physical loss or damage to property", the movement says.
Zurich "seeks to simplify the case by invoking a" micro-organism "exclusion that exists in a separate form of coverage," but "completely ignores at least two other policy provisions that provide coverage specifically for micro-organisms," the brief states.
"These specific contributions for micro-organism coverage pose a serious problem for Zurich's position that the" exclusion of the micro-organism "unequivocally excludes coverage for the exact situation relied on here," the movement argues for coverage. 59002]