Cincinnati Insurance Escapes Payout on Covid Business Loss Claim

Cincinnati Insurance Co. need not cover an oral surgery practice’s Covid-related business losses, the Eighth Circuit ruled, scoring a huge win for insurers.

The U.S. Court of Appeals for the Eighth Circuit Friday became the first federal appeals court to directly address the issue of whether policies insuring physical loss or damage to a policyholder’s premises encompass lost income stemming from shutdowns aimed at slowing the spread of the coronavirus.

The dental practice’s policy covers income loss and extra expenses incurred during a “period of restoration,” thus implying physical damage, Judge Roger L. Wollman wrote for the court.

“That the ...