§ 3.9 Direct Physical Loss or Damage

• Library: Guide to South Carolina Liability and Property Insurance Law (SCBar) (2019 Ed.)

§ 3.9 Direct Physical Loss or Damage

Property policies often provide that the insurer will pay for "direct physical loss or damage." In the absence of such direct physical loss or damage, the insurer will not be able to recover the claimed damages. While in the context of a third-party claim, the federal district court explained what is considered to be direct physical loss in Campbell, Inc. v. Northern Insurance Co.⁶⁸ The policy provided:

A. COVERED PROPERTY

1. (Carriers). As indicated on the Declarations, WE cover personal property of others, in transit, for which YOU are liable, as a carrier, bailee, or warehouseman, under tariff, bill of lading or shipping receipt all while loaded for shipment and in due course of transit within a radius as shown on the Declarations.

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F. COVERED CAUSES OF LOSS

Covered Causes of Loss means RISKS OF DIRECT PHYSICAL "LOSS" to Covered Property except those causes of "loss" listed in the Exclusions.

R. DEFINITIONS

"Loss" means accidental loss or damage.⁶⁹

The court specifically...