Relying on guidance from federal and state appeals courts—including the Massachusetts Supreme Judicial Court—the U.S. District Court for the District of Massachusetts has ruled that COVID-19 shutdown orders do not fall under the definition of “direct and physical loss to property” in a business interruption insurance policy.
On July, the district court granted summary judgment for the defendant, The Hartford Fire Insurance Co., in a breach-of-contract lawsuit brought by the insured, Creative Services Inc. (CSI).
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