Ala. Clothing Store’s COVID-19 Losses Excluded from Coverage, Federal Judge Rules

TUSCALOOSA, Ala. — An Alabama federal judge has dismissed a clothing store’s COVID-19 business interruption coverage action against Owners Insurance Co., ruling that the losses fall within the policy’s “Virus or Bacteria” exclusion.

In a July 27 order, Judge L. Scott Coogler of the U.S. District Court for the Northern District of Alabama said the policy clearly excludes losses “caused directly or indirectly” by a virus such as COVID-19.

After it was forced to cease and later limit operations in compliance with government COVID-19 response orders, Part Two LLC filed a claim with Owners for business interruption losses. The …