Insurer wins in one of the first U.S. COVID-19 coverage rulings

The court explained that coverage under the policy is provided for actual loss of business income sustained while operations are suspended, and the suspension must be caused by the direct physical loss of or damage to property. (Photo: Shutterstock)

In one of the first coronavirus-related court rulings in the U.S., a Michigan Circuit Court Judge ruled in favor of the insurer in a case where restaurants were seeking insurance coverage due to COVID-19-related government shutdowns.

Gavrilides Management Company sued its insurer, Michigan Insurance, for revenue lost during the coronavirus lockdown under its insurance policy with business interruption coverage. The company owns two central Michigan restaurants: the Soup Spoon Café and The Bistro.