Ohio Restaurants Did Not Suffer ‘Physical Loss or Damage,’ Judge Rules in COVID-19 Coverage Case

CLEVELAND — An Ohio federal judge has dismissed a Mexican restaurant owner’s COVID-19 business interruption coverage action, ruling that the complaint does not allege “direct physical loss of or damage to” insured property, as required by the policy.

In a Feb. 17 order, Judge J. Philip Calabrese of the U.S. District Court for the Northern District of Ohio concluded that the policy, issued by Auto Owners Insurance Co., requires “tangible loss of or harm” and does not cover loss of intended use.

Family Tacos, which operates two Mexican restaurants in Ohio, was forced to temporarily suspend dine-in operations in compliance …