A plaintiff commenced an action, asserting that an insurance policy (policy) insured the subject premises (premises) against “all loss resulting from damage caused by the action of civil authority.” The defendant insurance company refused to pay the claim, including the claim for loss of business income. The defendant moved to dismiss the complaint.

The defendant argued that the insurance contract “does not cover a loss of business income unless it arises out of a direct physical loss of or damage to property.” The defendant contended that the alleged loss related to restrictions “imposed in relation to the COVID-19 virus is not covered.”