Tapestry, Inc. v. Factory Mut. Insurance

Summary

The court answered a certified question concerning whether COVID-19’s presence in indoor air and on surfaces, together with resulting loss of functional use, triggers coverage under first-party all-risk property policies requiring physical loss or damage. It held that such coverage is not triggered unless the substance causes tangible, concrete, and material harm to the property or deprives the insured of possession. The court reasoned that the policy language, read in context, does not encompass a temporary loss of use without physical alteration or dispossession.