Michigan Daycare Not Covered for COVID-19 Business Income Losses, 7th Cir. Affirms



DOCUMENTS
  • Order


CHICAGO — A federal appellate panel has affirmed that a Michigan daycare cannot recoup COVID-19 losses from West Bend Mutual Insurance Co. because it did not plausibly allege “direct physical loss of or damage to” property, which is needed to trigger coverage.

On May 3, the 7th Circuit U.S. Court of Appeals panel agreed with the lower court that Paradigm Care & Enrichment Center did not sustain “physical alteration” to its property, that is some “alteration in appearance, shape, color or other material dimension.”

The panel noted that the Michigan Supreme Court has not yet addressed the issue, but …






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