In a long-awaited decision, the Ohio Supreme Court has joined many other state and federal courts in concluding that a temporary business closure due to a COVID-19 government shutdown order does not constitute a “direct physical loss” triggering business interruption insurance coverage.
According to the opinion, plaintiff Neuro-Communication Services argued that the company is entitled to recover lost income after COVID-19 shutdown orders forced it to cease almost all operations in the first few weeks of the pandemic. The defendant insurers, Cincinnati Insurance, Cincinnati Casualty, and Cincinnati Indemnity moved to dismiss the suit, or in the alternative, to have the federal court certify a question of state law to the Ohio Supreme Court.
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