Scott Mollen, Partner at Herrick, Feinstein LLP Scott Mollen, Partner at Herrick, Feinstein LLP

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COVID-19 Insurance Litigation—Complaint Dismissed—Court Rejects Argument That Term "Direct Physical Loss" Is Ambiguous—Policy Terms Are "Clear and Unambiguous"—Insurance Company Will "Not Pay For Loss Or Damage Caused By Or Resulting From Any Virus, Bacterium Or Other Microorganism That Induces Or Is Capable Of Inducing Physical Distress, Illness Or Disease"

A plaintiff commenced an action, asserting that an insurance policy (policy) insured the subject premises (premises) against "all loss resulting from damage caused by the action of civil authority." The defendant insurance company refused to pay the claim, including the claim for loss of business income. The defendant moved to dismiss the complaint.