"A plain reading of the policy provides that the parties intended to exclude coverage for COVID-19 related losses like the losses plaintiff allegedly suffered in the immediate case," the court said.
The opinion links two other recent Supreme Court decisions that have set precedent in resolving disputes over D&O insurance coverage, all clarifying the role Delaware laws play in those contracts.
Huntington Ingalls, according to the Supreme Court of Vermont, suffered "direct physical damage" because employees infected with COVID had been physically present at the facilities and unintentionally spread the virus to employees who were not ill.
The case law on this topic is divergent, a trend that will likely continue with different courts applying different interpretations of insurance policies.