8th Cir. Rules ‘Mere Loss of Use’ Does Not Trigger COVID-19 Coverage



DOCUMENTS
  • Order


ST. LOUIS — A federal appellate panel has upheld dismissal of an oral surgery center’s COVID-19 coverage action against The Cincinnati Insurance Co., agreeing with the lower court that it did not sustain direct loss or physical damage to covered property.

In a July 2 opinion, the 8th Circuit U.S. Court of Appeals panel held that the pandemic and related government-imposed restrictions did not require Oral Surgeons P.C. to “repair, rebuild or replace” its property; therefore, coverage under the policy was not triggered. The panel said “mere loss of use” is not synonymous with “physical loss or damage.”

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