Brewpub Owner Cannot Recoup COVID-19 Losses from Insurer, 6th Cir. Affirms

CINCINNATI — The 6th Circuit U.S. Court of Appeals upheld dismissal of a brewpub owner’s COVID-19 coverage action, ruling that neither the virus nor related government orders cause a tangible deprivation or destruction of property, as required by the policy.

On March 3, the appellate panel found the policy, issued by United Fire Group, only extends coverage when there is a direct physical loss, which the policyholder did not sustain.

Goodwood Brewing, LLC owns a brewpub in Frankfort, Ky., and a taproom in Louisville, Ky. In March 2020, Goodwood ceased all dine-in operations in compliance with government orders restricting the …