Business owners can sue insurer over coronavirus losses, Missouri judge rules

A federal judge in Missouri said on Wednesday a group of hair salons and restaurants can sue their insurance carrier for business interruption losses caused by the coronavirus pandemic, which they say caused a “direct physical loss” to their premises.

The decision against Cincinnati Insurance Co by U.S. District Judge Stephen Bough in Kansas City appears to be first victory for policyholders suing insurers for improperly denying claims related to shutdowns caused by COVID-19.

Insurers had won similar earlier cases in a Michigan state court and a Washington, D.C., court, successfully arguing that coverage was not warranted because the virus travels through the air and does not cause physical damage.

While not ruling on the merits, Bough rejected Cincinnati Insurance’s bid to dismiss the Missouri case.

He said the presence of COVID-19 was not a “benign condition,” and the plaintiffs plausibly alleged that particles were a “physical substance” that attached to and damaged their property, rendering them unsafe and unusable.

Cincinnati Insurance is a unit of Cincinnati Financial Corp . Its lawyers did not immediately respond to requests for comment.

The plaintiffs’ businesses are located in Missouri and Kansas. Their lawyers also did not immediately respond to requests for comment.

Business owners have filed hundreds of lawsuits claiming that their business interruption insurance, which typically offers coverage for losses from calamities such as fires or floods, should also cover a pandemic.

Insurers have countered that applying such coverage to COVID-19 losses would result in crippling payouts and deplete their capital.

Analysts have said the industry’s coronavirus-related losses have so far been modest.

The Judicial Panel on Multidistrict Litigation is considering whether to consolidate hundreds of lawsuits seeking business interruption coverage for COVID-19.

Also Watch

Will Kamala Harris’ Indian Roots Be The X Factor? | Brass Tacks | CNN News18

The case is Studio 417 Inc et al v Cincinnati Insurance Co, U.S. District Court, Western District of Missouri, No. 20-03127.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f3420c5a548bd25d05343da
[youtube_id] => XKU002J0USU
Business owners can sue insurer over coronavirus losses, Missouri judge rules => Will Kamala Harris’ Indian Roots Be The X Factor? | Brass Tacks | CNN News18
)

[1] => Array
(
[id] => 5f341ee5a07a3a25bbc18e5e
[youtube_id] => BwA4onfGbNk
Business owners can sue insurer over coronavirus losses, Missouri judge rules => Bengaluru Riots: Does Anger Over FB Post Justify Violence & Rioting? | Brass Tacks | CNN News18
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c278c2f2492e214884,5d96f74de3f5f312274ca307&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-08-09T22:02:02.000Z&publish_max=2020-08-12T22:02:02.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

Aboriginal group says miners’ use of gag clauses needs...

MELBOURNE An Australian Aboriginal group on whose land BHP and Rio Tinto mine...

Romelu Lukaku Conquered Inter Milan And Italy. Is The...

DUESSELDORF, GERMANY - AUGUST 10: Romelu Lukaku of Inter...

Global Markets: Gold shines on falling dollar, yields; global...

SYDNEY Gold scaled a new high on Wednesday as a weaker dollar and...

Council Post: UX Is At The Core Of The...

By David Hunter, the CEO of Epic Web Studios and ASAPmaps in Erie, PA. He...