Mo. Federal Judge Refuses to Dismiss COVID-19 Business Interruption Coverage Action

  • Order

KANSAS CITY — A Missouri federal judge has refused to dismiss a proposed class action filed by a number of small businesses seeking coverage for COVID-19-related business interruption losses, ruling that the plaintiffs have adequately alleged a direct ‘physical loss’ under the policies.

In an Aug. 12 order, Judge Steven R. Bough of the U.S. District Court for the Western District of Missouri said the plaintiffs plausibly argue that the policies, all issued by The Cincinnati Insurance Co., cover “physical loss or physical damage,” meaning that either a “loss” or “damage” is required, and that “loss” is distinct from “damage.”


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