Secured Appellate Victory for Commercial Insurance Company in Covid-19 Policy Coverage Dispute

Amphenol Corporation v. Factory Mutual Insurance Company, No. 23-832 (2d Cir)

In July 2024, the U.S. Court of Appeals for the 2nd Circuit affirmed the District Court of Connecticut’s judgment in favor of Factory Mutual Insurance Company in a Covid-19 pandemic-related insurance coverage dispute.  The case centered around whether Amphenol Corporation's claimed economic losses due to the COVID-19 pandemic were covered under its first party property insurance policy issued by FMIC.

Amphenol Corporation, a manufacturer and distributor of electronic components, filed a complaint against Factory Mutual in January of 2021. Amphenol alleged $100 million in property damage and business interruption losses due to “physical loss or damage” caused by the Covid-19 virus. Amphenol sought to amend its complaint to include proposed allegations that the virus “adsorbed” or “attached” to property, remained infectious for up to a month, and that Amphenol engaged in substantial “repair or remediation efforts” to address the alleged adsorption or attachment of the virus. The District Court denied the motion to amend and issued judgment on the pleadings in favor of FMIC.