Ohio Restaurants Did Not Suffer ‘Physical Loss or Damage,’ 6th Cir. Rules in COVID-19 Coverage Action



DOCUMENTS
  • Order


CINCINNATI — A 6th Circuit U.S. Court of Appeals panel has upheld dismissal of a Mexican restaurant’s COVID-19 business interruption coverage action, affirming that it failed to allege “direct physical loss of or damage to” insured property, as required by the policy.

On Dec. 21, the appellate panel agreed with the U.S. District Court for the Northern District of Ohio hat the policy, issued by Auto Owners Insurance Co. to Family Tacos LLC, requires “tangible loss of or harm” and does not cover mere loss of intended use.

The panel cited the Ohio Supreme Court’s recent ruling in Neuro-Commc’n …






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