A court of the Northern District of Texas granted multiple insurers’ motions to dismiss with prejudice in a COVID-19 business interruption dispute, holding that under persuasive authority from the Fourth Circuit, the policy’s Civil Authority Provision only covers imminent or actual physical loss and finding that the insureds did not plausibly allege that any civil orders causing the insureds’ hotels to close were responding to an actual or imminent threat of physical loss, damage, or destruction.
commercial property policy, COVID 19, business interruption, time element provision, special time element provision, civil authority provision, physical loss, imminent loss, imminent damage
