S.C. High Court Sides With Insurer in Restaurant Chain’s COVID-19 Coverage Battle



DOCUMENTS
  • Opinion


COLUMBIA, S.C. — The South Carolina Supreme Court has agreed with Fireman’s Fund Insurance Co. that the presence of the COVID-19 virus and related government orders do not cause “direct physical loss or damage” to insured property.

In an Aug. 10 opinion, the state high court answered a question certified by the District of South Carolina in a restaurant chain’s COVID-19 insurance action. The court concluded that mere loss of use does not trigger coverage.

Sullivan Management LLC operates nine Carolina Ale House restaurants in South Carolina. It alleged that government orders prohibiting dine-in operations, as well as potential virus …






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