US court rulings in three jurisdictions have backed insurers in denying COVID-19 business interruption (BI) claims due to a lack of physical damage, as more cases are set to come forward.

A District of Columbia Superior Court ruling this month says the coronavirus leaves no visible imprint or structural alteration and therefore does not trigger coverage, while a district court in Texas dismissed a case brought by a group of barbershops.

A Michigan State Court decision last month also sided with insurers, finding that tangible alteration to a property is required for BI coverage.

The decisions have been highlighted by the Insurance Information Institute, which in May launched the Future of American Insurance and Reinsurance (FAIR) campaign, outlining the industry’s position on pandemics.

“Direct physical damage to property is required to trigger a business interruption claim, thus the COVID-19 pandemic and subsequent government-ordered shutdowns do not warrant claims for business interruption,” it says.

Many more cases are expected to be brought, with Reuters reporting that the Judicial Panel on Multidistrict Litigation this month denied two motions to consolidate hundreds of suits, including dozens of class actions.

The Business Interruption Group, representing small and mid-size enterprises, is promoting legislation that would see insurers voluntarily pay out certain claims before being reimbursed by the Federal Government.

Other proposals include options modelled on current programs for terrorism cover and flooding.