Iowa Federal Court Affirms Insurers' Position In A Business Interruption Case Ruling
December 2, 2020

The U.S. District Court for the Southern District of Iowa ruled in favor of the insurer in a lawsuit on pandemic-related business interruption (BI) claims due to lack of alleged physical property loss or damage that would trigger coverage.
According to Judge John A. Jarvey:

This lawsuit is part of a nationwide litigation trend we’ve seen in recent months, led by trial attorneys, attempting to retroactively alter BI contracts to cover pandemic-related income losses—a misguided effort that places the interests of attorneys ahead of business owners’ and jeopardizes insurers’ ability to meet promises to policyholders on covered claims. The Iowa ruling adds to the growing list of favorable rulings affirming insurers’ position that global pandemic risks are uninsurable.
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