--- title: Business Interruption Cases Show Unpredictable Outcomes For Insurers Facing COVID-19 Claims date: 2020-09-14T00:00:00-04:00 author: Import Bot canonical_url: "https://www.kelleydrye.com/viewpoints/client-advisories/business-interruption-cases-show-unpredictable-outcomes-for-insurers-facing-covid-19-claims" section: Client Advisories --- # Business Interruption Cases Show Unpredictable Outcomes For Insurers Facing COVID-19 Claims September 14, 2020 Kelley Drye Client Advisory Since our updates in [July](/News-Events/Publications/Client-Advisories/Michigan-Judge-Denies-Coverage-For-Business-Interr) and [August](/News-Events/Publications/Client-Advisories/Business-Interruption-Insurance-Procedural-Win-and), new cases on business interruption coverage for COVID-19 losses have been trickling in and out of courts around the country. Over 1,000 cases have been filed against a variety of insurers. The graphic below depicts the insurers that have been named as defendants the most frequently, as of August 24, 2020: ![advisory-pic.png](https://s3.us-east-1.amazonaws.com/cdn.kelleydrye.com/content/uploads/viewpoints/advisory-pic.png "advisory-pic.png") The majority of cases turn on two issues: (i) whether there is a virus exclusion barring coverage in the insured’s policy and (ii) whether loss of use of property due to COVID-19 qualifies as a covered, ​“physical loss or damage.” Courts have come to different conclusions. In the pending Western District of Pennsylvania case,[ *Windber Hospital v Travelers Property Casualty Company of America*, No. 220-cv-80](https://www.law360.com/dockets/download/5ea1b402d07cca0223aec89c?doc_url=https%3A%2F%2Fecf.pawd.uscourts.gov%2Fdoc1%2F15717317826&label=Case+Filing), the defendants and class action plaintiffs’ briefs on *Travelers*’ Motion for Judgment on the Pleadings cited non-binding case-law from Texas and Missouri with opposing decisions on whether COVID-19 losses constituted ​“physical damage.” (The Pennsylvania Court previously denied Plaintiffs’ Motion for Summary Judgment as premature.) New appellate cases outside of the COVID-19 context may help settle the courts’ interpretation of ​“physical loss or damage”. For example, the 11th Circuit of Appeals recently decided that dust and debris from nearby construction that made plaintiff’s restaurant unusable did not constitute ​“direct physical damage,” and therefore was not covered under defendant’s policy, because it could be easily cleaned up. The case is [*Mama Jo’s Inc. v. Sparta Insurance Co.*, Case No. 18-12-887](https://cases.justia.com/federal/appellate-courts/ca11/18-12887/18-12887-2020-08-18.pdf) (11th Cir. August 18, 2020). Kelley Drye & Warren LLP will be closely monitoring the case law as it progresses. Please click [here](mailto:marketing@kelleydrye.com?subject=Insurance%20Recovery%20Updates&body=Please%20sign%20me%20up%20to%20receive%20updates%20from%20Kelley%20Drye%20related%20to%20insurance%20recovery.) if you would like to be kept abreast of current developments. - Share this entry - - - - - [ View entry pdf ](https://s3.amazonaws.com/cdn.kelleydrye.com/content/uploads/pdf-snapshots/business-interruption-cases-show-unpredictable-outcomes-for-insurers-facing-covid-19-claims-20230614122025.pdf) ### Related Services - [Litigation](https://www.kelleydrye.com/practices/litigation) Blog [ ![](https://d3iuizmsm2hayf.cloudfront.net/content/uploads/Listing-rectangles/Blog_Post_Listing.svg) ![](https://d3iuizmsm2hayf.cloudfront.net/content/uploads/Listing-Images/adlaw_billboard_listing.webp?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=750&q=80&w=1125&s=e1a7aebcee8115938489d6575321e698) ](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/hawaii-enacts-a-synthetic-performer-law) Ad Law Access July 26, 2026 [ ](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/hawaii-enacts-a-synthetic-performer-law) Blog [ ![](https://d3iuizmsm2hayf.cloudfront.net/content/uploads/Listing-rectangles/Blog_Post_Listing.svg) ![](https://d3iuizmsm2hayf.cloudfront.net/content/uploads/Listing-Images/Trade_and_Manufacturing_Monitor.webp?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=750&q=80&w=1125&s=fa2fce63dfde7da177148c0e92116e0e) ](https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/ustr-announces-final-tariff-rates-exclusions-and-tariff-rate-quotas) Trade and Manufacturing Monitor July 24, 2026 [ ](https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/ustr-announces-final-tariff-rates-exclusions-and-tariff-rate-quotas)