Article ID: b2e376f34083c909a5223db16d4f8a798a87e69635b2db3e31481080bfe3e74f
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: bs4_heuristic
URL: https://www.businessinsurance.com/appeals-court-partially-revives-covid-business-interruption-claim/
Body Text
Appeals court partially revives COVID business interruption claim - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Appeals court partially revives COVID business interruption claim by Gavin Souter Claims Disputes , Coronavirus , P/C Insurers Mar 3, 2026 Affiliated FM does not have to pay most COVID-19-related losses at the Treasure Island resort and casino in Las Vegas, but the communicable disease provision in its policy, which had a much lower limit, may still apply, a federal appeals court ruled Tuesday. In Treasure Island LLC v. Affiliated FM Insurance Co. , the 9th U.S. Circuit Court of Appeals in San Francisco affirmed a lower court’s ruling in favor of the FM unit on the casino’s business interruption claim but reversed the ruling on the communicable disease coverage provision. The court held that “direct physical loss or damage” was required to trigger business interruption coverage under the main policy wording and that the presence of COVID-19 in the air or on surfaces does not meet that standard. The resort sought coverage for property damage and business interruption after closing during the pandemic under a policy with $850 million in property damage limits and $327 million in business interruption limits. However, the policy’s communicable disease endorsement included a $100,000 sublimit for both property damage and business interruption. The appeals court found that the lower court erred in granting summary judgment to the insurer on the communicable disease provisions. Treasure Island produced evidence that two employees contracted COVID-19 during the policy period, and an expert concluded with “99.99% certainty” that the virus was present on the property before the policy expired, creating a factual dispute over whether the disease triggered coverage. The case was remanded to the district court for further proceedings on the communicable disease coverage claims. Related News Trump orders oil tanker insurance support March 3, 2026 Access to care continues to plague comp industry: panel March 3, 2026 Cyber liability market remains competitive March 3, 2026 Virginia passes bill to increase comp burial expenses March 3, 2026 Squirrel indicted in Ohio network outage March 3, 2026 Employee crime affects most large firms: Survey March 3, 2026 MGA Rokstone launches division focused on digital economy risks March 3, 2026 Axa XL names E&S casualty zonal leaders March 3, 2026 Hilb hires former Risk Strategies exec as platform leader March 3, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
Metadata (JSON)
{
"score": 12.25
}