A judge for the US District Court for the Western District of Missouri on Wednesday denied an insurance company’s motions to dismiss two cases in which businesses contended that business interruption insurance should cover COVID-19 losses.
Businesses in Missouri and Kansas claimed that COVID-19 caused a “direct physical loss” to their businesses. They filed suit against the Cincinnati Insurance Company, claiming that business interruption insurance should also cover a pandemic. This type of insurance usually covers losses when a business is halted because of direct physical loss or damage, which normally occurs from natural disasters such as fires and floods.
