Article ID: c3c53c5cb54e3d72006d7f5acdded33bf45950a2b51291ea3eff0d883c4ba87f
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URL: https://www.businessinsurance.com/judge-rules-for-sompo-unit-in-covid-cover-fight/
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Judge rules for Sompo unit in COVID cover fight - 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 2026 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 2026 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 2026 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 2026 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 Judge rules for Sompo unit in COVID cover fight by Richard Sine Coronavirus , Coverage Disputes , P/C Insurers Japan Sep 22, 2026 Sompo America has defeated a $75.9 million COVID-19 insurance claim from an auto parts manufacturer, after a federal judge found the company withheld unfavorable test results while failing to show the virus was present at most of its plants. The ruling, in Teijin Automotive Technologies NA Holding Corp. v. Sompo America Insurance Company , was issued Friday in the U.S. District Court for the Middle District of North Carolina. Teijin, a unit of Teijin in Tokyo, makes materials for the automotive and marine industries. It held a Sompo property policy covering plants in North Carolina, Louisiana, Indiana, Ohio and Michigan, including a “Communicable Disease Coverage Endorsement” paying for losses when access to a facility is restricted because of the “actual not suspected presence” of disease. After COVID-19 hit its workforce in 2020, Teijin sought coverage at seven facilities; Sompo denied the claim in 2022. The judge found Teijin could show the virus’ presence only at plants in North Carolina and Louisiana, where employees tested positive the same day they worked onsite. But even there, the government orders and company policies restricting access predated any confirmed case, he found. “Nothing in the record demonstrates that any of the relevant governmental orders or corporate decisions emanated from the presence of COVID-19 at an insured facility,” the judge wrote. The judge also found Sompo independently entitled to summary judgment because Teijin concealed that an employee at its Indiana plant had tested negative both before and after a positive result, and that Teijin’s own safety staff had treated the case as a “false positive” while still presenting it to Sompo as confirmed. Teijin’s “statements and omissions were obviously false, willful, and material,” the judge wrote, “and cannot in any way be seen as innocent.” The judge granted summary judgment to Sompo on all of Teijin’s claims and dismissed the complaint with prejudice. 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