D.C. Judge Rules For Insurer, Dismisses Restaurants’ Business Interruption Claims

The insurance industry has notched another victory in its defense of its commercial insurance policies against claims for business interruption due to the coronavirus.

In a case brought by the owner of several restaurants against its insurer over business interruption due to the coronavirus shutdown ordered by the mayor, a District of Columbia Superior Court judge has sided with the insurer, ruling that the restaurants’ insurance policy is not triggered because the shutdown did not amount to direct physical loss. Finding that the plaintiff restaurants failed to prove there was any direct physical loss, Associate Judge Kelly Higashi on Thursday granted a summary judgment in the suit in favor of Erie Insurance Exchange.