HDI Global Insurance Co. denied APX’s claim for covid 19 related coverage and argued in court that even if the virus were found at APX’s water parks, it would not cause “direct physical loss or damage.” HDI also argued that under the policy, a loss of use did not qualify APX for coverage. In her ruling, Judge LeGrow did not address the issue of whether or not there was “physical loss or damage” in her dismissal order, instead, Judge LeGrow found that the contamination exclusion undoubtedly bars coverage, because the policy’s definitions of contamination includes “virus,” among other substances, according to the judge’s ruling.
APX tried to argue that the contamination exclusion refers to “traditional environmental pollution or contamination,” but judge LeGrow disagreed, instead finding that there was no clear limitation in the policy. In September, APX made oral argument that HDI’s interpretation of the policy exclusion clause was overly broad and ambiguous, while the HDI successfully argued that the policy did not suggest that COVID-19 is not among those that are excluded environmental pollutant viruses from coverage.
