A dental office is liable for coverage under its business interruption policy with CNA Financial Corp., a Pennsylvania court judge earlier this week.
Rule Timothy A. Ungarean d / b / a Smile Savers Dentistry PC v. CNA and Valley Forge Insurance Co. Judge Christine Ward at the Court of Common Pleas in Allegheny County, Pittsburgh, granted a summary judgment to the dentist, who was forced to close most of its operations due to government lock-in decisions in March 2020.
According to CNA policy, business interruption coverage was direct physical loss of or damage to property in the premises described ", said court documents.
While the insurer argued that the policy required that there be some physical hassle or damage to a property before business interruption coverage was triggered, the wording allows for a broader interpretation of the policy, the judge ruled.
According to the judgment, "in the context of this insurance contract, the terms" loss "and" damage "are separated by the disjunctive" or ", and therefore the terms must mean something different from each other. Consequently, in this case the most reasonable definition of" loss "one that focuses on the act of losing possession and / or deprivation of property instead of one that includes various forms of property damage."
"All financial losses were secondary to the companies' physical losses," the judge ruled.
The CNA refused to comment on the ruling.
The case is one of more than 1
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