Eversheds Sutherland 11th Circuit Business Blog
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All-Risk Insurance Coverage Doesn’t Cover All Risks from COVID-19

The Eleventh Circuit has answered an important and timely question about insurance coverage for business losses due to COVID-19. Under Florida law, an “all-risk” insurance policy covering direct physical loss or damage does not insure against losses and expenses incurred by businesses as a result of COVID-19. In SA Palm Beach, LLC v. Certain Underwriters at Lloyd’s London, 2022 U.S....

No Direct Physical Loss or Damage, No Coverage: All-Risk Policy Does Not Cover Lost Profits Due to COVID-19 Government Restrictions

The Eleventh Circuit held that an insured’s policy did not cover the lost profits it suffered as a result of government restrictions implemented in response to the COVID-19 pandemic because the policy only covered “direct physical loss or damage.” Ascent Hospitality Management Co. v. Employers Insurance Co. of Wasau, 2022 U.S. App. LEXIS 1161 (11th Cir. Jan. 14, 2022), follows just a...