Art Studios Lose Bid for COVID-19 Coverage in West Virginia Federal Court

CHARLESTON, W. Va. — Cincinnati Insurance Co. is not required to cover COVID-19 business interruption losses sustained by the owner of two art studios, a West Virginia federal judge has ruled, explaining that the insured properties did not sustain “direct physical loss.”

On Nov. 2, Judge Irene C. Berger of the U.S. District Court for the Southern District of West Virginia concluded that economic losses arising from the government-ordered closure of non-essential businesses do not cause physical damage or physical loss to insured property.

Uncork and Create LLC, which held art and cooking classes in its studios, says it was …