On March 17, 2020, the governor of Iowa issued a proclamation closing restaurants and bars because of the health threats posed by COVID-19. Wakonda Club (“Wakonda”) brought an action against Selective Insurance Company of America after Selective denied its claim for loss of income under its business interruption insurance policy. Wakonda sought a declaratory judgment regarding coverage, and alleged Selective breached the contract and acted in bad faith for its denial of coverage. Wakonda appeals from the district court’s entry of summary judgment for Selective. It argues the court erred by holding Wakonda had not suffered a covered loss because there was no physical alteration to its property, and the virus exclusion was not applicable because the proclamation, not the virus, caused it to close.

County:

Polk