Case of First Impression Rules No Coverage for COVID Business Interruption Claim Because No Direct Physical Loss

Michigan Circuit Court Judge Joyce Draganchuk (Ingham County) granted the insurer’s motion for summary disposition in Gavrilides Management Company v. Michigan Insurance Company. At issue was coverage for restaurants that were shuttered by COVID-19-related government orders. The court concluded that no coverage is owed. 

New York Joins Growing Collection of States Considering Laws to Force Insurers to Pay COVID-19 Business Interruption Losses

On Friday, March 27, 2020, New York joined the growing chorus of states that have introduced legislation requiring first-party property policies to insure business interruption losses due to COVID-19 – notwithstanding policy provisions requiring there to first be some physical damage and possibly despite widespread use of a “Virus” exclusion.