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April 25, 2022

Legal Update
John G. O'Neill, Jessica H. Park

Massachusetts Supreme Judicial Court Recently Ruled on Coverage for COVID-Related Losses

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The Massachusetts Supreme Judicial court recently ruled in Verveine Corp. v. Strathmore Ins. Co., slip op. No. SJC-13172 (April 21, 2022) that losses from COVID-related shutdown orders do not constitute “direct physical loss of or damage to” property so as to qualify for coverage under the business interruption or civil authority provisions of an insurance policy. With this decision, Massachusetts joins the majority of courts that have found that there is no coverage for COVID-related losses. Sugarman Rogers attorneys Jessica Park and John O’Neill authored an amicus brief on behalf of the Massachusetts Insurance and Reinsurance Bar Association, which the court recognized in its opinion.

A copy of the decision can be found here.