6th Cir. Vacates COVID-19 Coverage Ruling for Policyholders, Grants Insurer’s Petition to Appeal

CLEVELAND — Citing its recent ruling that neither the COVID-19 virus nor related government closure orders cause “direct physical loss of or damage to property” for insurance purposes, the 6th Circuit U.S. Court of Appeals has vacated an Ohio federal judge’s order requiring Zurich American Insurance Co. to pay for COVID-19 business interruption losses incurred by a group of restaurants.

In a Sept. 29 order, the appellate panel granted Zurich’s petition to appeal the U.S. District Court for the Northern District of Ohio’s Jan. 19 ruling under § 1292(b), which authorizes certification of orders for interlocutory appeal, rather than certification …