Promotional Clothing Co. Loses Bid for COVID-19 Business Interruption Coverage

  • Order

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


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