10
with reference to a defined premises, the plain understanding of the terms “physical loss”
or “physical damage” is material destruction or material harm.
8
The policy’s business income loss provision incorporates the same requirement of
“physical loss” or “physical damage” as the policy’s property loss provision. Business
income loss coverage applies to loss of business income and other expenses “due to the
necessary ‘suspension’ of [the insured’s] ‘operations’ during a ‘period of restoration.’”
The “‘suspension’ must be caused by direct ‘loss’ to property” that is “caused by or
resulting from” a “Covered Cause of Loss,” ultimately defined as a “physical loss” or
“physical damage.” And “period of restoration” is defined in the policy as the time needed
to “repair[], rebuil[d] or replace[]” property or to locate a new permanent property.
This policy language is plain and unambiguous. The need to repair, rebuild, replace,
or expend time securing a new, permanent property is a pre-condition for coverage of lost
business income and other expenses.
9
Any alternative meaning of the terms “physical loss”
8
We find no merit in Uncork’s argument that the term “physical loss” is broader
than the term “physical damage,” thereby encompassing additional types of coverage. As
explained above, in the context employed, the plain meaning of the word “loss” connotes
a greater degree of harm than the word “damage,” not a separate and distinct concept.
Moreover, Uncork’s argument on this point rests on an understanding of the word “loss”
that would render meaningless the adjective “physical,” which modifies “loss.” Payne,
466 S.E.2d at 165-66 (requiring that “full effect” be given to the plain meaning of policy
language); see also Goodwill Indus. of Cent. Okla., Inc. v. Phila. Indem. Ins. Co., 21 F.4th
704, 711 (10th Cir. 2021) (rejecting similar argument under Oklahoma law); Santo’s
Italian Café LLC v. Acuity Ins. Co., 15 F.4th 398, 404 (6th Cir. 2021) (same, under Ohio
law).
9
For this reason, we reject as untenable Uncork’s reliance on an alternative
dictionary definition of “loss” as the “failure to keep possession” or “deprivation,” meaning
“to keep from the possession, enjoyment, or use of something.” See Webster’s Third New
Int’l Dictionary 606, 1338 (2002).