Government Orders do not Cause ‘Direct Physical Loss,’ Idaho Federal Judge Rules



DOCUMENTS
  • Order


DES MOINES, Idaho — An Idaho restaurant owner is not covered for economic losses arising from the COVID-19 pandemic because it did not suffer “direct physical loss of or damage to property” as required by the policy, a federal judge has ruled.

In a May 6 order, Judge Stephanie Rose of the U.S. District Court for the Southern District of Iowa held that coverage for “loss” or “damage” under Iowa law at least requires the presence of a physical condition on or affecting the property located at the insured premises.

Lisette Enterprises Ltd. owns Lucca Restaurant in Des Moines, Iowa. …






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