COVID-19, Related Government Orders Do Not Trigger Coverage, 3rd Cir. Affirms
January 9, 2023
DOCUMENTS
- Opinion
PHILADELPHIA — The 3rd Circuit U.S. Court of Appeals has affirmed that mere loss of use of property caused by COVID-19 and related government closure orders, without physical damage, does not constitute the “physical loss of or damage” necessary to trigger coverage under commercial property insurance policies.
In a Jan. 6 precedential opinion, the appellate panel predicted that the Pennsylvania and New Jersey Supreme Courts would follow the 3rd Circuit’s ruling in Port Authority of New York and New Jersey v. Affiliated FM Insurance Co., 311 F.3d 226 (3d Cir. 2002) that policyholders “must show that the functionalities of their …
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