Loss of Use of Property Not Covered Under Property Loss or Damage Policy

Nick Gavrilides, the owner of two restaurants in Lansing, Michigan, claims the Michigan stay-at-home order interfered with the use of his restaurants. He filed a business interruption claim with his insurance company, Michigan Insurance. His policy, however, covered only “direct physical loss or damage to the [insured’s] property”. Since the restaurants were not physically damaged, Michigan Insurance declined to cover. Judge Joyce Draganchuk in Ingham County, Michigan ruled in favor of the insurance company. With hundreds of cases like Gavrilides filed in state and federal courts across the U.S., this case may be used as guidance for many more to come.