11th Cir. Says Pandemic, Government Orders, Did Not Cause ‘Direct Physical Loss of or Damage’

TAMPA, Fla. — The 11th Circuit U.S. Court of Appeals has upheld dismissal of three COVID-19 coverage actions filed by four Florida businesses, affirming that neither government orders limiting their operations during the pandemic, nor the virus itself, caused “direct physical loss of or damage” to their properties.

In a May 5 opinion, the appellate panel agreed with the insurers that the insured properties were not tangibly altered, as required by the policies.

However, the panel vacated in part the dismissal of a fourth action and remanded the case for the U.S. District Court for the Northern District of Florida …