Ala. Federal Judge Rejects Optometrist’s Bid for COVID-19 Business Interruption Coverage

  • Complaint

MOBILE, Ala. — An Alabama federal judge has rejected an optometrist office’s bid for business interruption coverage, ruling that it did not sustain a direct physical loss of its property as a result of a government order limiting its operations during the COVID-19 pandemic.

In an Oct. 21 order, Judge Jeffrey U. Beaverstock of the U.S. District Court for the Southern District of Alabama explained that a “direct physical loss” requires “some tangible alteration or disturbance to property,” which did not occur in the instant case.

In a May 15 class action complaint, Hillcrest Optical Inc. demanded coverage from Continental …


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