Auto Auction Says COVID-19, Shutdown Orders Caused Physical Loss or Damage to Property

BALTIMORE — A vehicle auction facility has sued Chubb Ltd. and its subsidiary Great Northern Insurance Co. for coverage of business interruption losses caused by government closure orders issued in response to the COVID-19 pandemic.

In a complaint removed to the U.S. District Court for the District of Maryland on Oct. 7, Bel Air Auto Auction Inc. contends the COVID-19 virus and the governmental orders caused it to sustain “direct physical loss or damage” to its insured premises, as required by the policy.

Defendants, however, denied Bel Air’s claim on the basis that COVID-19 did not result in direct physical …