Federal Judge Refuses to Dismiss Kansas City Restaurant’s COVID-19 Coverage Action

KANSAS CITY — A Missouri federal judge has refused to dismiss a COVID-19 business interruption coverage action filed by the owner of several Kansas City bars and restaurants, ruling that the plaintiff adequately alleged a direct “physical loss” under the policies.

In an Aug. 12 order, Judge Steven R. Bough of the U.S. District Court for the Western District of Missouri said the plaintiffs plausibly argue that the policies, all issued by The Cincinnati Insurance Co., cover “physical loss or physical damage,” meaning that either a “loss” or “damage” is required, and that “loss” is distinct from “damage.”

The action …