THINKING INSIDE THE BOX ABOUT COVID-19 BUSINESS INTERRUPTION INSURANCE COVERAGE.

(Irfan Khan / Los Angeles Times)

In Johnson v. Hartford Fin. Serv's Grp., Inc., No. 1:20-cv-02000-SDG, 2021 WL 37573 (N.D. Ga. January 4, 2021), a federal judge in Georgia followed the face of a majority view and looked in the same direction.  "More specifically, a litany of federal and state courts across the country interpreting similar policy language have roundly dismissed COVID-19-related insurance cases for failure to allege that the covered properties sustained any physical damage."  Johnson, 2021 WL 37573, at *4.

The Court ruled, in effect, that Georgia substantive law which governed the outcome here, is aligned with the "litany of federal and state courts" the Court followed in this case.  The Court in this case accordingly granted insurance company defendants' motion to dismiss alleged coverage claims for losses resulting from interrupted business operations.

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