Circus Circus v. AIG Specialty Ins. Co.

In its brief, UP weighs in on the tumultuous effect the pandemic has inflicted on the entertainment industry, namely a hotel/ casino in the entertainment capital of the world. Apart from, but complimentary to, the argument of the policyholder that the presence of COVID-19 at the insured location caused physical loss or damage. UP files this brief to give this Court further context in relation to three issues: (1) the majority rule of law confirms health hazards cause “loss” or “damage” to property insurance coverage under an all risk property policy; (2) Couch on Insurance – the treatise relied upon by the district court – acknowledges that coverage exists despite lack of distinct, demonstrable physical alteration of property; and (3) whether COVID-19 actually causes “physical damage” to any insured property is a factual inquiry that cannot be determined at the pleading stage.