Federal Court Rules Florida Businesses Not Entitled To Insurance Coverage For COVID-19 Losses
Federal Court Rules Florida Businesses Not Entitled To Insurance Coverage For COVID-19 Losses Aug 31, 2022 The COVID-19 pandemic created widespread–and unprecedented–disruption to Florida’s economy. Many businesses suffered a severe drop in revenue and were forced to temporarily or permanently close their doors. This, in turn, spawned a wave of business lawsuits against insurance companies who denied claims under “all-risk” commercial insurance policies. Commercial Policies Required “Physical” Damage to Property The U.S. Court of Appeals for the 11th Circuit, which has appellate jurisdiction over federal cases originating in Florida, recently addressed a series of lawsuits on this issue. The basic question underlying the various cases–captioned here as SA Palm Beach, LLC v. Certain Underwriters at Lloyd’s London –was whether COVID-19 caused “direct physical loss of or damage to” insured business property. As you probably remember, back in March 2020 the governor of Florida issued a number of executive orders restricting the operations of “non-essential” businesses like restaurants and retail stores. Many Florida counties also issued “stay at home” orders that further restricted–or forced the temporary closure of–these same non-essential businesses. One of the plaintiffs in this case operated a restaurant in Palm Beach. The plaintiff held a commercial property insurance policy from Lloyd’s of London. The policy stated the insurer agreed to pay for any loss of business income or extra expense incurred due to “direct physical loss of or damage to” the covered property. (As noted, the 11th Circuit consolidated several cases for review, all of which essentially follow this same fact pattern.) The policy further stated that coverage began 72 hours after the time of said direct physical loss or damage. Essentially, the insurer’s argument was that COVID-19 did not create any “physical” loss or damage to the insured property of the plaintiffs. Indeed, the purpose of such coverage was to assist business owners “repair, rebuild, and replace” damaged physical property. That made no sense in the context of a pandemic-related closure. All of these cases are subject to the substantive law of Florida. But as is common with insurance litigation, the “diversity of jurisdiction” between the parties meant the various lawsuits were tried in federal court. The 11th Circuit therefore had to determine how Florida insurance law should address this situation. The 11th Circuit noted that neither the Florida Supreme Court nor the state’s intermediate appellate courts had addressed this question in a published opinion. But based on how the majority of other states have dealt with the issue, the 11th Circuit concluded that the Florida Supreme Court would hold the insurer was not liable for coverage in these cases. Accordingly, there was “no coverage for loss of use based on intangible and incorporeal harm to the property due to COVID-19 and the closure orders that were issued by state and local authorities even though the property was rendered temporarily unsuitable for its intended use.” Speak with a Tampa, Florida, Insurance Lawyer Today If you are involved in an insurance dispute it is important to seek out qualified legal advice from attorneys who understand this field. To speak with a Tampa insurance litigation attorney, contact HD Law Partners today to schedule a consultation. Source: scholar.google.com/scholar_case?case=813-253-533333997489 Posted in Insurance Litigation | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us