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3:21-cv-00156
Connecticut
Insurance
Sarah A. L. Merriam
The Second Circuit ruled that Factory Mutual Insurance Co. is not required to indemnify the global manufacturer ITT Inc. against business interruptions due to COVID-19 or cover additional health and safety measures under its "all risks" policy, marking another courtroom victory for insurance companies facing claims for virus-related losses from commercial clients.
A Connecticut federal judge threw out ITT Inc.'s lawsuit seeking COVID-19 pandemic-related insurance coverage from Factory Mutual Insurance Co., finding the aerospace and industrial components manufacturer couldn't show its properties were physically damaged or altered by the presence of the virus.
Factory Mutual Insurance Co. has asked a Connecticut federal judge to toss ITT Inc.'s $750 million coverage suit for business interruption losses, saying cases across the country had shown neither the presence of the coronavirus nor government shutdown orders cause a "physical loss or damage" to property.
ITT Inc. on Friday accused Factory Mutual Insurance Co. of illegally refusing to cover the manufacturing company's tens of millions of dollars in losses stemming from the COVID-19 pandemic, telling a Connecticut federal court that the insurer is attempting to limit its coverage to only a portion of its "all risks" policy.