N.C. Theatre Owner Barred from COVID-19 Coverage, 7th Cir. Affirms

  • Opinion

CHICAGO - A movie theatre owner is not covered for COVID-19-related losses because it did not sustain "direct physical loss of or damage to property," as required by its policy issued by Houston Casualty Co., the 7th Circuit U.S. Court of Appeals has ruled.

In an April 12 opinion, the appellate panel explained that neither government orders issued in response to the pandemic, nor the virus itself, causes the physical loss needed to trigger coverage.

East Coast Entertainment of Durham LLC (ECE) owns movie theatres in North Carolina. ECE sustained business interruption losses after the state governor ordered non-essential businesses …


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