Allison Dunn / Law.com
A jury trial for coverage from the Covid-19 business interruption losses was won by an insurer for the first time. A verdict was issued in favor of the Cincinnati insurance company by a federal jury in the western district of Missouri in K.C. Hopps Ltd. v. Cincinnati Insurance Co., Case No. 4:20-cv-437 (W.D. Mo. 2021). K.C. Hopps Ltd. (“Hopps”) owned bars, restaurants, catering services and entertainment space. In response to Covid-19, Hopps business was limited to drive throughs and take out services. Hopps submitted a claim for coverage under its commercial property policy for “Business Interruption due to COVID-19”to The Cincinnati Insurance Company and Cincinnati denied.
Hopps then filed a lawsuit against Cincinnati seeking coverage under the policy’s Business Income, Extra Expense, Civil Authority, Ingress coverage and Egress coverage provisions. Cincinnati has argued that Hopps never suffered any loss and was not entitled to the civil authority coverage, ingress coverage, or egress coverage. Cincinnati also stated that Hopps’ policy exclusions precluded coverage. Summary judgement was later denied to both parties on whether Business Income coverage was triggered. The jury found that although the stay-at-home orders did impact Hopps business, it did not stop him from accessing its premises. Because of this, The Cincinnati Insurance Company was awarded summary judgment on Hopps’ Civil Authority coverage and on Ingress / egress claims.
After a three-day trial, the court rules in favor of the Cincinnati Insurance Company. The report did not specify as to why the jury made this decision but it is believed that the jury did not believe Hopps’ businesses suffered physical loss or physical damage due to the Covid-19 pandemic