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Rare COVID BI profit for policyholders revoked in federal court



A relatively rare victory in policyholders' efforts to obtain coverage for covid-19 business interruptions was overturned this week when a federal district court overturned its previous positive verdict following a decision in a court of appeal.

In January, U.S. District Court in Cleveland had refused to dismiss a lawsuit for covid-19 business interruption filed by Twinsburg, Ohio-based Henderson Road Systems Inc. v. Zurich American Insurance Co., which held in its judgment in Henderson Road Restaurant Systems Inc. v. Zurich American Insurance Co. that the insurer's insurance language was ambiguous and that a "microorganism" exclusion is applicable. Acuity Insurance Co . and ruled that Santosuossos, a restaurant in Medina, Ohio, had not found direct physical loss or damage under the terms of the policy issued by Sheboygan, Wisconsin-based Acuity.

On September 29, the 6th District Court was evacuated. decision granting a summary judgment to Henderson and remanding the case back to the district court for further proceedings in accordance with its Santos ruling, following Tuesday's decision by the Cleveland District Court.

In its most recent decision, citing Santos ruling, changed the district court its previous decision and issued Zurich a summary judgment. Although the plaintiffs in the case filed a brief dispute that Santos decision could be separated from its case, the district court did not agree.

"Overall, the court sees no basis on which s can

The 6th Circuit "has clarified that loss of use alone is insufficient to trigger insurance cover for" direct physical loss " of . " property" under the ordinary meaning of these, " it was stated, when it upheld Zurich's claims for summary judgment.

The actors in the case had no comments or did not respond to a request for comments.


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