Mich. Restaurant Owner Loses Bid for COVID-19 Coverage



DOCUMENTS
  • Order


DETROIT — The owner of two Michigan restaurants cannot recoup COVID-19-related business interruption losses from The Cincinnati Insurance Co. because it did not sustain “direct physical loss” or “direct physical damage” to property, a federal judge has ruled.

In a May 27 order, Senior Judge Bernard Friedman of the U.S. District Court for the Eastern District of Michigan concluded that the terms “accidental physical loss or accidental physical damage” require some tangible damage to property to trigger coverage.

“While potentially devastating economically, none of the losses alleged were tangible, physical losses as required under the Policy,” the judge concluded.






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