8th Circ. Gives Insurer First Appellate COVID Coverage Win

By Shawn Rice (July 2, 2021, 5:32 PM EDT) -- An Iowa dental clinic can't force Cincinnati Insurance Co. to pay losses due to government-imposed COVID-19 restrictions, the Eighth Circuit ruled Friday, marking a huge win for insurers in the first federal appellate decision on whether business interruption coverage applies to pandemic-related losses.

Businesses have been struggling for a year to persuade courts that losses from COVID-related shutdowns are covered by their insurers. Many of these suits have reached the appellate courts, and the Eighth Circuit has become the first to decide whether these losses were caused by "direct physical loss or damage."

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