Portion of COVID-19 Claim Survives Motion to Dismiss

October 24, 2021
Tred R. Eyerly - Insurance Law Hawaii

While the insured failed to demonstrate direct physical loss, Crisis Event coverage was still possible. SJP Investment Partners LLC v. Cincinnati Insurance Company, 2021 U.S. Dist. LEXIS 162612 (N.D. Ala. Aug. 27, 2021).

The insured owned a hotel in Birmingham. The state's public health orders limited operations and caused temporarily closures due to the pandemic. COVID-19 was present in the hotel on a least one occasion. In mid-February 2020, a previous guest informed the hotel that she had contracted the virus and subsequently two hotel employees tested positive for the virus.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


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