Business interruption insurance: physical damage

In MDS Inc and Another v Factory Mutual Insurance Co 2021 ONCA 594 the Ontario Court of Appeal, reversing a very lengthy first instance decision, has confirmed that loss of use is not physical damage for the purposes of a business interruption policy. Although this was not a Covid-19 case, the judgment confirms that physical damage requires some form of change in the subject matter and not simply an inability to use the subject matter.

MDS : the facts