Wis. High Court Rules COVID-19 Losses Not Covered by Society Insurance Policy

MADISON, Wis. — Wisconsin’s highest court has unanimously ruled that a restaurant’s inability to use its space for in-person dining due to the COVID-19 pandemic and related government restrictions does not constitute a “direct physical loss of or damage” to property for insurance coverage purposes.

In a June 1 opinion, the Wisconsin Supreme Court further ruled that the suspension of a restaurant’s operations caused by the presence of COVID-19 does not trigger coverage under a policy’s contamination provision.

Colectivo Coffee Roasters Inc. filed a class action against Society Insurance Co. in the Milwaukee Circuit Court, demanding coverage for economic losses …