Cincinnati Insurance Scores Wins in 4 Ala. Federal COVID-19 Coverage Actions

MONTGOMERY, Ala. — An Alabama federal judge has found in favor of The Cincinnati Casualty Co. and The Cincinnati Insurance Co. in four COVID-19 coverage actions, ruling that the small-business plaintiffs failed to allege a “direct physical loss” to their insured premises.

In the orders issued on Sept. 28, Chief Judge Emily Marks of the U.S. District Court for the Middle District of Alabama explained that neither the COVID-19 virus itself, nor government closure orders, cause direct physical loss or damage to property.

“Any transmittal of the virus is to individuals who may be on the property, but there is …