Insurance Coverage for COVID-19 Related Losses Under Commercial Property Policies

As published in the January issue of the TBA News, a monthly newsletter published by the Toledo Bar Association.

The COVID-19 pandemic ushered in several new challenges for businesses in various industries. One such challenge involves businesses seeking coverage under their insurance policies for losses related to COVID-19. In this article, Joseph Cole discusses how a recent Ohio Supreme Court decision limits the availability of coverage under many commercial property policies. He points out that most Business Interruption (BI) coverage is triggered by “direct physical loss or damage.” Joe notes that the issue being litigated across the country—not just in Ohio—is whether or not COVID-19 and the widespread shutdown orders constitute “direct physical loss.” He highlights how the Ohio Supreme Court’s recent decision in Neuro-Communication Servs., Inc. v. Cincinnati Ins. Co., that COVID-19 and the related shutdown orders did not result in “direct physical loss,” makes it more difficult for policyholders to obtain BI coverage for COVID-19 related losses.

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