‘Direct Physical Loss’ Requires Physical Damage, Insurance Trade Group Tells 7th Cir.
May 7, 2021
CHICAGO — An insurance trade group has told the 7th Circuit U.S. Court of Appeals that interpreting the phrase “direct physical loss of or damage to property” to cover economic losses caused by COVID-19 and related government closure orders “would threaten insurer solvency and harm Illinois’ insurance marketplace.”
In a May 5 amicus curiae brief, the American Property Casualty Insurance Association (APCIA) says ignoring the plain language of commercial property policies “would open the floodgates to all manner of claims that these policies were never intended to cover” and “subject insurers to overwhelming claim payment liability that would threaten their …
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