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Restaurant’s Bid for Covid Loss Coverage Denied by Sixth Circuit

Sept. 22, 2021, 9:24 PM

An Italian restaurant in Ohio cannot recover income it lost during pandemic-related shutdowns because its commercial property insurance policy didn’t cover that style of loss, the Sixth Circuit said Wednesday.

The restaurant’s policy with Acuity Insurance Company covers business interruption “caused by direct physical loss of or damage to property.” But a pandemic-triggered government order requiring the closure of all in-person dining in the state doesn’t fall within those grounds, the court said.

Acuity must reimburse the restaurant for income lost “due to the necessary suspension” of its operations if that suspension was caused by direct physical loss or damage, ...

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