Washington High Court Upholds Ruling for Insurer in COVID-19 Coverage Action

OLYMPIA, Wash. — The Washington Supreme Court has upheld an award of summary judgment to Mutual of Enumclaw Insurance Co. (MOE) in a COVID-19 coverage action filed by a dental practice, ruling that civil authority orders issued in response to the pandemic do not cause “direct physical loss of or damage to” insured property.

On Aug. 25, the high court, sitting en banc, held that mere deprivation of use, without a physical aspect, does not trigger coverage, and the government orders did not physically prevent the plaintiff from using its property.

“While there may be some flexibility to a physical …