SC Justices Say COVID-19 Orders Don't Trigger Coverage

Rani Gupta was quoted by Law360 discussing the recent South Carolina Supreme Court decision holding that government shutdown orders implemented in response to the COVID-19 pandemic do not constitute physical loss or damage in order to trigger insurance coverage.

Rani stated that the high court's finding that shutdown orders do not cause physical loss or damage is not unexpected. However, Rani found that it was disappointing that the justices came to the conclusion that the presence of the virus does not alter property.

She stated that the insurance policy and “decades of case law” don’t require a policyholder to show structural alteration to allege property damage.

According to Rani, courts have held that the virus does physically and tangibly alter property, adding that the virus makes people sick by altering the surfaces and the air of property. The idea that the virus must alter the appearance, shape, color, structure or other material dimension of the property is not in the policy language, she explained, noting that the policy only requires physical loss or damage.

"I don't think that part of the court's opinion is particularly well grounded in pre-COVID insurance law," Rani said.

Click here to read the full Law360 article.