Virus Exclusion Bars Coverage for Church Chicken Owner’s COVID-19 Losses, Ariz. Judge Rules

  • Order

PHOENIX — An Arizona federal judge has dismissed a COVID-19 business interruption insurance action filed by the owner of several Church’s Fried Chicken franchises, ruling that the policy’s virus exclusion bars coverage.

In a Nov. 20 order, Judge John J. Tuchi of the U.S. District Court for the District of Arizona rejected Border Chicken AZ LLC’s argument that its losses were caused by government closure orders issued in response to the COVID-19 pandemic, rather than the virus itself.

“The Policy expressly states that the Virus Exclusion bars coverage for ‘loss or damage caused directly or indirectly’ by a virus and …


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