A growing number of US court decisions are coming down on the side of insurers in disputes over coronavirus-related business interruption cover, the Insurance Information Institute says.

A Florida court decision last week ruled that a dentist was not covered for losses during COVID-19 restrictions due to a virus exclusion in a policy held with a unit of Nationwide Mutual Insurance Co.

In California, a judge ruled a downtown Los Angeles restaurant was not entitled to claim for income lost during a shutdown order that closed non-essential businesses on March 15.

“Efforts to reinterpret or retroactively change provisions in insurance contracts have met fierce resistance in courts across the country,” the institute says.

Similar decisions have also been handed down in Texas, Michigan and the District of Columbia.

US District Judge Stephen Wilson says in the restaurant decision that direct physical loss or damage to property is required under California law.

“An insured cannot recover by attempting to artfully plead impairment to economically valuable use of property as physical loss or damage to property,” he said.

US media have reported that there are more than 1000 shut-down related business interruption disputes that are starting to work their way through the courts.