Md. Vehicle Auction Loses Appeal for COVID-19 Coverage in 4th Cir.

  • Opinion

BALTIMORE — A Maryland vehicle auction is not entitled to COVID-19 coverage from Great Northern Insurance Co. because there was no “direct physical loss or damage” to covered property or surrounding property as required by the policy, a federal appellate court has affirmed.

On June 14, the 4th Circuit U.S. Court of Appeals agreed with the lower court that “direct physical loss or damage” requires harmful structural changes or alterations to a property and does not encompass loss of use.

Bel Air Auto Auction processes more than 100,000 vehicles per year through consignments from car dealers, private business fleets, and …


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