Clear & Unambiguous Exclusion Defeats Loss of Business Income

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There was a time when litigation over insurance issues had no political consequences. like so many other things, the Covid-19 pandemic has upended that norm. Now local governments have at times issued orders closing spas and other businesses, allegedly, to prevent the virus’s spread. In Oppers Salon v. Travelers, Case No. 2:20-cv-03342-JDW, USDC (November 30, 2020).

ZALMA OPINION

This is one of many circuit court decisions concluding that concluded the policy required – as a minimum before coverage applies – that there is damage to property. The virus caused no property damage. The insured could not say what was needed to repair their facilities since there was no damage to repair. Finally, the virus exclusion is clear and unambiguous. This, and all the other similar cases, reveal that no insurance policy covers every possible cause of loss and insurance cannot solve every problem or loss faced by an insured.