Insurer Says ‘Virus or Bacteria’ Exclusion Defeats COVID-19 Coverage

MIAMI — Depositors Insurance Co. has moved to dismiss a COVID-19-related business interruption coverage action pending in Florida federal court, arguing that the losses fall within the policy’s “Virus or Bacteria” exclusion.

In a July 31 motion filed in the U.S. District Court for the Southern District of Florida, the insurer asserts that the executive orders closing all non-essential businesses “were not issued in response to any damage to property due to a Covered Cause of Loss.” Rather, the orders were issued in response to the threat to public health posed by the COVID-19 virus, Depositors contends.

B&G, …