Wednesday, November 23, 2022

Carrier Prevails In Another Business Interruption Coverage Case Arising Out of COVID-19 Closures

In the case of The Foundation for Indiana University of Pennsylvania v. Utica Nat’l Ins. Group, No. 2:22-CV-01126-AJS (W.D. Pa. Oct. 6, 2022 Schwab, J.), the court ruled that, given the language of a business insurance policy’s virus exclusion, and based upon the facts as pled by the Plaintiffs, the court ruled that business interruption coverage would be excluded for any of the Plaintiffs’ alleged economic losses and countered when the four (4) dormitories on the college campus were ordered to be vacated during the COVID-19 pandemic.

Moreover, the court found that the Plaintiff’s claims failed to trigger coverage under the policy at issue because the Plaintiffs’ dormitories did not sustain a direct physical loss of, or damage to, their actual structures.

Accordingly, the court ruled in favor of the insurance carrier on the Plaintiff’s claim for a declaration of a finding of coverage and on the related claims for breach of contract and bad faith.

Anyone wishing to review a copy of this decision may click this LINK.

I send thanks to Attorney Mark A. Martini of the Pittsburgh law firm of Robb Leonard Mulvihill, LLP for bringing this case to my attention.

Source of image:  Photo by Tim Mossholder on

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