Promotional Clothing Co. Loses Bid for COVID-19 Business Interruption Coverage
December 4, 2020
TOPEKA, Kan. — A Kansas federal judge has dismissed a promotional clothing company’s COVID-19 business interruption coverage action against The Cincinnati Insurance Co., ruling that the plaintiff failed to demonstrate a “direct loss to covered property” as required by the policy.
On Dec. 3, Chief Judge Julie A. Robinson rejected Promotional Headwear International d/b/a Sportsman Cap & Bag’s argument that direct physical loss or damage does not require a tangible, permanent loss or physical alteration of the property.
“As this Court previously held in Great Plains Ventures, Inc. v. Liberty Mutual Fire Ins. Co., ‘physical damage’ in an insurance …
- Litchfield Cavo LLP
- Miller Schirger
- Stueve Siegel Hanson
- Wallace Saunders Austin Brown & Enochs