COVID 19 Shutdown Not Covered Under Insurance Policy

In the case, Steven Baker v. Oregon Mutual Insurance Co., 21-51097,  the Ninth Circuit joined other appellate courts in finding that restaurants were not entitled to insurance coverage for losses due to the COVID-19 pandemic shutdowns.  A panel of judges affirmed a district court opinion that the pandemic and pandemic-related shutdown orders did not cause direct physical loss or damage within the meaning of the insurance policy at issue.  Most interruption of business insurance policies require the policy holder to prove a “direct physical loss or damage” to the insured premises.  This Ninth Circuit decision is in line with other decisions which found these insurance policies did not provide coverage for loss of income related to COVID shutdowns.