Ala. Federal Judge Dismisses Clinics’ COVID-19 Coverage Action for Lack of Physical Loss

MOBILE, Ala. — An Alabama federal judge has dismissed a COVID-19 coverage action filed against The Cincinnati Insurance Co. by the owners of several walk-in medical clinics, ruling that they failed to allege direct physical loss to property as required by their policies.

In a Sept. 29 order, Judge Terry F. Moorer of the U.S. District Court for the Southern District of Alabama ruled that although plaintiffs were forced to suspend all non-emergency medical procedures in compliance with government orders, they failed to allege actual physical damage to their properties, which is required to trigger coverage.

On March 14, …