Cincinnati Insurance Policy Bars Coverage for Pandemics, Ala. Federal Judge Rules

BIRMINGHAM, Ala. – An Alabama federal judge has dismissed a boutique hotel owner’s COVID-19 coverage action against Cincinnati Insurance Co., ruling that losses caused by pandemics are clearly excluded from the policy’s Crisis Event coverage.

In a Dec. 14 order, Judge R. David Proctor of the U.S. District Court for the Northern District of Alabama explained that the policy contains two catchall phrases which encompass pandemics.

SJP Investment Partners LLC owns and operates Hotel Indigo in Birmingham, Ala. In March 2020, SJP suffered a decline in business due to the COVID-19 pandemic and had to either limit its operation or …