Car Auction Not Entitled to Coverage for COVID-19 Losses, Md. Federal Judge Rules

BALTIMORE — A Maryland vehicle auction facility is not entitled to COVID-19 coverage from Great Northern Insurance Co. because there was no “direct physical loss or damage” to covered property or surrounding property as required by the policy, a federal judge has ruled.

In an April 14 order, Judge Richard Bennett of the U.S. District Court for the District of Maryland rejected Bel Air Auto Auction Inc.’s argument that “direct physical loss or damage” includes not only detrimental and harmful structural changes or alterations to a property, but also includes “a detrimental or harmful loss of use of that tangible …