Cato Corp. v. Zurich Am. Ins. Co.

Summary

The court held that Cato sufficiently alleged direct physical loss of or damage to its property under its all-risk policy based on the alleged physical effects of COVID-19. It nevertheless affirmed dismissal because the policy's contamination exclusion unambiguously excluded losses caused by the actual presence of a virus, including related inability to use or occupy property and remediation costs. The court modified the lower court's reasoning but affirmed its judgment.