Morrison Mahoney partner Bill Schneider recently wrote a case study in the Boston Bar Journal about the recent decision in Verveine Corp. v. Strathmore Insurance Company.
On April 21, 2022, the Massachusetts Supreme Judicial Court (“SJC”) became the first state court of last resort to weigh in on the question of whether economic losses arising from the COVID-19 pandemic are covered under standard commercial property insurance policies.
The SJC agreed with the insurer, and held that the plaintiffs’ losses were not covered in the absence of “direct physical loss of or damage to” property, the provision under which the plaintiffs claimed losses. Although the SJC denied the insureds recovery for their pandemic business losses, the decision provides helpful guidance for businesses making risk management decisions to address similar issues that may arise in the future.
Read more about the case study here.