Iowa's highest court on Friday became the second state supreme court to weigh in on whether businesses can recover losses they suffered due to the COVID-19 pandemic through insurance by ruling that a country club and steakhouse could not.
that the inability of Wakonda Club and Jesse's Embers to fully use their premises after the state restricted social gatherings and in-person dining in 2020 did not trigger coverage under their property insurance policies.
Most of those rulings were by federal courts interpreting state law. Some businesses have urged state supreme courts, which have the final word on interpreting state laws, to "right a ship which has gone adrift," as Wakonda Club said in a brief. Wakonda Club argued it was entitled to coverage due to the governor's proclamation under an all-risk commercial property insurance policy as it amounted to a "direct physical loss of or damage to property," but Selective denied its claim.
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