Commercial Real Estate Co. Loses Battle for COVID-19 Coverage in Ohio

  • Order

CLEVELAND — A commercial real estate company is not entitled to coverage from Westfield Insurance Co. for COVID-19 business interruption losses because it did not sustain “direct physical loss of or damage” to property, an Ohio federal judge has ruled.

In a Feb. 26 order, Judge Pamela A. Barker of the U.S. District Court for the Northern District of Ohio concluded that “direct physical loss” means that there was complete tangible, material destruction or deprivation of insured property while “direct physical damage” means that there was partial tangible, material destruction of insured property.

The judge rejected the plaintiff’s argument …


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