A federal judge in Ohio ruled that Zurich American Insurance Co. must cover losses suffered by several steak and seafood restaurants due to COVID-19 shutdown orders, concluding that the insurance policy can be reasonably interpreted to cover the loss of use of the property. Like many other insurance companies before them, Zurich argued that there must be tangible structural damage to the restaurants in order for there to be coverage for lost business income. The judge disagreed, agreeing with the restaurants that the business income provision can also be read to extend coverage to instances where the insured loses its ability to use its premises for the intended purpose. Read the full opinion here.

This decision is an important one for business owners across the country. Many courts have dismissed similar lawsuits filed by businesses under similar circumstances. If you own a business that lost income due to COVID-19 shutdown orders and have questions about your insurance policy, call us for a free consultation at 708-576-1624 or send us an email at [email protected].