Another Court Rules In Favor Of Upholding Business Interruption Insurance Contracts

Yet another court ruled in favor of insurers recently in the ongoing dispute over business income (interruption) insurance (BI) today. From Business Insurance:

“The virus exclusion in a dentist’s commercial insurance policy with a unit of Nationwide Mutual Insurance Co. bars coverage for coronavirus-related losses, a federal court ruled Wednesday.”

Today’s decision from the U.S. District Court for the Middle District of Florida in Fort Myers adds to the growing list of rulings decided in favor of insurers, and delivers a clear win for the integrity of contracts. Efforts to reinterpret or retroactively change provisions in insurance contracts have met fierce resistance in courts across the country. From the ruling:

“‘Because [the plaintiff’s] damages resulted from COVID-19, which is clearly a virus, neither the Governor’s executive order narrowing dental services to only emergency procedures nor the disinfection of the dental office of the virus is a “Covered Cause of Loss” under the plain language of the policy’s exclusion,’ the ruling states.”