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  • posted: May 04, 2022

On April 22, 2022, the Iowa Supreme Court became the second state supreme court to address the coverage arguments raised by insureds seeking business interruption coverage for closures required by government orders stemming from the Covid-19 pandemic. The Court rejected the coverage claim by Wakonda Club, holding mere loss of use did not constitute “direct physical loss of or damage to property” as required for coverage: Some physical damage or alteration to the premises is required. Having so concluded, the Court affirmed the summary judgment entered in favor of Selective Insurance Company in the trial court.

Selective Insurance Company was represented by Douglas Haag, senior partner at Patterson Law Firm.

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