AP Iowa

Court: Iowa restaurants can’t collect COVID loss insurance

Published April 22, 2022 12:55 PM

By DAVID PITT
Associated Press

DES MOINES, Iowa (AP) — The Iowa Supreme Court says two restaurants cannot collect damages from insurance policies for losing business following the governor’s March 2020 order requiring restaurants to temporarily stop in-person dining amid rising COVID-19 cases. Jesse’s Embers and Wakonda Club, both in Des Moines, sued after their insurers denied coverage and a judge dismissed their lawsuits. The cases likely serve as a lesson to business owners who believe they’ve purchased all-risk insurance for their business thinking it would cover loss of revenue in all instances. Insurers argued there were no physical aspects to the loss so they didn’t have to pay and the court unanimously agreed.

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