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Iowa Supreme Court rejects COVID-loss suit


Iowa’s highest court on Friday became the second state supreme court to weigh in on whether businesses can recover losses they suffered due to the COVID-19 pandemic through insurance, Reuters reported. The Iowa Supreme Court ruled that the inability of two Des Moines businesses, Wakonda Club and Jesse’s Embers, to fully use their premises after the state restricted social gatherings and in-person dining in 2020 did not trigger coverage under their property insurance policies. The rulings marked the latest in a long line of defeats for businesses nationally who filed hundreds of lawsuits seeking billions of dollars in coverage after states imposed lockdowns and social gathering restrictions to slow the virus’s spread. The decision came a day after the Massachusetts Supreme Judicial Court in a similar case ruled that three restaurants’ losses likewise did not constitute property losses requiring coverage.

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