STORY FROM: COVID-19 Litigation Report

Mich. Judge Rules Restaurants’ COVID-19 Business Interruption Losses Not Covered

LANSING, Mich. — A Michigan state judge has rejected a restaurant owner’s argument that government closure orders issued in response to the COVID-19 pandemic caused his eateries to sustain physical damage, triggering coverage under its property policy issued by Michigan Insurance Co.

In a July 1 verbal ruling, Judge Joyce Draganchuk of the Ingham County (Mich.) Circuit Court held that “some tangible alteration” to property is required in order for the policyholder’s claim for $650,000 in business interruption losses to be covered.

“There has to be something that physically alters the integrity of the property,” the judge ...

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