Ga. Daycare Loses Bid for COVID-19 Business Interruption Coverage

ATHENS, Ga. — A Georgia daycare facility is not entitled to coverage for COVID-19 business interruption losses because it did not allege “direct physical loss of or damage to property,” as required by its policies, a federal judge has ruled.

In a March 11 order, Judge Clay D. Land of the U.S. District Court for the Middle District of Georgia concluded that the government shutdown orders issued in response to the COVID-19 pandemic did not cause “an actual change in insured property,” rendering it “unsatisfactory for future use or requiring that repairs be made.”

Plaintiff Lemontree Academy LLC owns …