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Insurer Wins Coverage Dispute for COVID-19 Business Losses

In The One Group Hospitality, Inc. v. Employers Insurance Company of Wausau, the United States District Court for the Western District of Missouri dismissed an insured business owner’s claim for the costs of suspending and limiting its restaurant operations during the COVID-19 pandemic under an “all risk” insurance policy. The court’s decision to terminate the litigation at the pleading stage was based on the express language of the policy limiting coverage to “direct physical loss or damage,” as well as a contamination exclusion.

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