Money Covid-19 (Image: Shutterstock) Tenth Circuit Holds That COVID Closure Orders Do Not Trigger Business Interruption Coverage
The court reasoned that the temporary inability to use property caused by COVID shutdown orders doesn't involve a covered physical loss of property, and in any event, the policy's virus exclusion applied.
January 20, 2022 at 11:00 AM
6 minute read
In Goodwill Industries of Central Oklahoma v. Philadelphia Indemnity Insurance Co., — F.4th –, 2021 U.S. App. LEXIS 37802 (Dec. 21, 2021), the U.S. Court of Appeals for the Tenth Circuit joined other circuits in holding that government closure orders due to the COVID-19 pandemic do not trigger insurance coverage for loss of business income. The court reasoned that the temporary inability to use property caused by COVID shutdown orders doesn't involve a covered physical loss of property, and in any event, the policy's virus exclusion applied.
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