To date, approximately 150 business-interruption insurance coverage lawsuits have been filed in federal courts arising from COVID-19 and related government-ordered restrictions. In what appears to be the first substantive ruling on the merits in these cases, the Southern District of New York recently ruled against an insured who could not meet its burden to show a likelihood of success in establishing \u201cproperty damage\u201d due to the novel coronavirus to support its claim for injunctive relief. Judge Caproni expressed sympathy \u201cfor every small business that is having difficulties during this period of time,\u201d but concluded that \u201cNew York law is clear\u201d in requiring actual property damage to trigger business interruption coverage. Because the insured\u2019s coverage theory rested on a government shutdown in the absence of any property damage, the Court denied its preliminary injunction motion, reasoning \u201cthis is just not what\u2019s covered under these insurance policies.\u201d<\/p>\n
To read the full text of this post by Duane Morris attorneys Damon Vocke<\/a>\u00a0and\u00a0David T. McTaggart<\/a>, please visit the Duane Morris Insurance Law Blog<\/em><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" To date, approximately 150 business-interruption insurance coverage lawsuits have been filed in federal courts arising from COVID-19 and related government-ordered restrictions. In what appears to be the first substantive ruling on the merits in these cases, the Southern District of New York recently ruled against an insured who could not meet its burden to show … <\/p>\n