Covid Shut Down is not Direct Physical Loss or Damage

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Defendants Certain Underwriters at Lloyd’s, London moved to dismiss the Amended Class Action Complaint (the “Motion”) brought in Sun Cuisine, LLC d/b/a Zest Restaurant and Market, individually and on behalf of all others similarly situated v. Certain Underwriters At Lloyd’s London Subscribing to Contract Number B0429BA1900350 Under Collective Certificate Endorsement 350OR100802, No. 1:20-cv-21827-GAYLES/OTAZO-REYES, United States District Court, S.D. Florida (August 31, 2021)

The Court found, therefore, that Plaintiff’s allegations, even if taken as true, do not plausibly show direct physical loss or damage to the insured property or nearby property to trigger coverage under the Policy, and granted the defendants’ motion for summary judgment.

ZALMA OPINION

People whose businesses were shut down as a result of governmental orders to reduce the spread of the Pandemic continue to try to get their losses covered by insurance with creative pleading claiming the existence of the virus damaged their property. They continue, with regularity, to fail. If the government orders acted to take the property of the various restaurants, like the plaintiffs, they have a remedy under the Fifth Amendment to the U.S. Constitution to obtain compensation for property taken by the government.