COLUMBUS, Ohio (WKBN) — During Ohio’s emergency health order and COVID-19 shutdown, there were many medical services and procedures that were deemed nonessential and therefore stopped.
One of those impacted was Neuro-Communication Services, which has an office in Boardman called Hearing Innovations.
Because of the health orders, Neuro-Communication had to stop all operations for several weeks, suffering a substantial financial loss.
The company filed a claim for the financial loss with its business insurance stating that its policy covered “all-risk” and that the company also held a coverage extension for business income. The claim was denied and Neuro-Communications filed a lawsuit.
The case ended up before the Ohio Supreme Court. It was a tough one, according to the court’s opinion, because there was no exact precedent.
The case focused on the term “loss” in the policy and the court agreed with the insurance company that it means a loss to the property and not the business operation.
The court wrote in its decision that “many other state and federal courts considering insurance claims for business losses due to Covid and related shutdown orders have concluded that the mere loss of use of a premises does not constitute a direct physical loss.”