A Difficult Case Does Not Require Courts To Set Aside Common Sense

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There Must be Physical Damage to Property to Collect Business Interruption Benefits - Shutting Down a Business Because of the Novel Coronavirus, or COVID-19 is Not Direct Physical Damage in West Virginia.

First party property insurance, whether designated as “all risk” or “direct risks of physical loss” not excluded require that there be physical loss to the property, the risk of loss of which is insured. Because of orders from state governments requiring businesses to shut down to avoid the spread of the disease business owners attempt to regain their losses by making a claim under the business interruption provision of commercial property policies.

In Uncork And Create LLC v. The Cincinnati Insurance Company, et al., Civil Action No. 2:20-cv-00401, United States District Court For The Southern District Of West Virginia Charleston Division (November 2, 2020) analyzed the problem as have most courts presented with the issue and decided that the virus caused no physical damage to the property and thus no coverage.