Goodwill Not Entitled to Coverage for COVID-19 Losses, Okla. Federal Judge Rules

OKLAHOMA CITY — A federal judge has dismissed a COVID-19 coverage action filed by Goodwill Industries of Central Oklahoma Inc. against Philadelphia Indemnity Insurance Co., ruling that the non-profit did not sustain a “direct physical loss” as required by the policy.

In a Nov. 9 complaint, Judge David L. Russell of the U.S. District Court for the Western District of Oklahoma found Goodwill does not describe how the spread of a communicable disease nationally caused tangible physical loss of or damage to any of its premises.

Goodwill said it was forced to cease its operations in compliance with state and …