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In Huntington Ingalls Industries, Inc. et al. v. Ace American Insurance  Company et al, No. 2021-173, 2022 VT 4 Supreme Court of Vermont  (September 23, 2022) the Supreme Court of Vermont reversed a decision  refusing to allow an insured ship builder to recover business  interruption losses as a result of government orders dealing with  Covid-19 and remanded the case to the trial court to determine if Covid  caused direct physical damage to property. 

FACTS 

 Insured, Huntington Ingalls Industries, Inc., is the largest military  shipbuilding company in the United States and provides professional  services to government and industry partners. It employs over 42,000  people, the majority of whom work at its shipyards in Virginia and  Mississippi.  In March 2020, insured purchased a property insurance policy (Global  Policy) from insurer Huntington Ingalls Industries Risk Management LLC,  its captive insurance subsidiary and a Vermont corporation.   The insured kept its shipyards open but made changes to its operations  to comply with CDC guidance and protect employees.