Justices on Massachusetts’ top court on Friday questioned why it should diverge from courts nationally that have found businesses are not entitled to insurance coverage for losses caused by COVID-19 as it heard an appeal by three restaurants.
In the first such case to reach a state’s supreme court, a lawyer for the restaurant owners told the Massachusetts Supreme Judicial Court that a judge was wrong to toss their challenge to Strathmore Insurance Co’s denial of coverage for their losses.
Benjamin Zimmermann, a lawyer for the Coppa, Toro and Little Donkey restaurants in Boston and Cambridge, argued they, like other businesses, bought all-risk policies like Strathmore’s to protect against losses other policies would not cover.
Those policies provide coverage for when a property is rendered unsafe and unusable due to conditions stemming from events such as tornadoes and fires, but also from an undetectable deadly virus, said Zimmermann of Sugarman and Sugarman.