No Physical Loss Dooms Gift Shop Co.’s Virus Coverage Suit

By Lauren Berg (January 26, 2022, 9:28 PM EST) – The Cincinnati Casualty Co. has no obligation to cover business interruption losses of a gift shop supply business resulting from the coronavirus pandemic, a Texas federal judge ruled on Wednesday, finding the suit does not contain allegations of direct physical harm.

U.S. District Judge Karen Gren Scholer dismissed the lawsuit brought by Lamacar Inc., which does business as Kelli’s Gift Shop Suppliers, finding the company reported no physical damage that would be covered by its policy. Cincinnati commercial property insurance.

Lamacar claimed in its complaint that the form of the COVID-19 virus physically binds to metal, wood, fabrics, glass…

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