Oklahoma Court Rules That Cherokee Nation Entitled To Coverage For COVID-19 Business Losses
02.26.21
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(Article from Insurance Law Alert, February 2021)
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An Oklahoma district court ruled that several insurers were obligated to cover business losses sustained by the Cherokee Nation in the wake of government-mandated shutdowns. Cherokee Nation v. Lexington Ins. Co., No. CV-2020-00150 (Okla. Dist. Ct. Jan. 14, 2021).
The Cherokee Nation argued that the covered properties sustained “direct physical loss or damage” because they could not be used as intended, emphasizing that use of the word “or” indicated that “loss” encompassed more than tangible damage. The court agreed and granted the Nation’s summary judgment motion. Citing Elegant Massage LLC v. State Farm Mutual Auto. Ins. Co., 2020 WL 7249624 (E.D. Va. Dec. 9, 2020) (discussed in our December 2020 Alert), the court held that “direct physical loss” includes property that is uninhabitable because of an intangible risk.