Auto Systems Manufacturers Not Covered for COVID-19 Losses, Ind. Federal Judge Rules

INDIANAPOLIS — An Indiana federal judge has dismissed a COVID-19 coverage action filed by the manufacturers of fuel delivery systems for car manufacturers such as Ford and General Motors, ruling they did not sustain “physical loss or damage” to covered property.

In a Feb. 3 order, Judge Sarah E. Barker of the U.S. District Court for the Southern District of Indiana explained that a policy provision based upon "physical loss" is triggered when a loss from a physical alteration to the insured property has occurred, rather than for a reduction in the usefulness of the property due to its inability …