Ohio Federal Judge Dismisses Restaurants’ COVID-19 Coverage Action

CLEVELAND — An Ohio federal judge has dismissed a COVID-19 coverage action filed by the owners of two restaurants, ruling that they did not sustain “direct physical loss of or damage” to insured property as required by the policy.

In granting Zurich American Insurance Co.’s motion to dismiss on Feb. 19, Senior Judge Christopher A. Boyko of the U.S. District Court for the Northern District of Ohio concluded that “direct and “physical” are adjectives describing both “loss of” and “damage to” the insured premises.

“Neither the COVID-19 virus nor the state government orders caused ‘direct physical loss of or …