The Supreme Court of Wisconsin Wednesday ruled that a Milwaukee-based coffee roster cannot file property insurance claims for COVID-19-related income losses.

The case stemmed from a dispute between Colectivo Coffee Roasters and their property insurer, Society Insurance. Under the insurance policy, Society would pay for “direct physical loss of or damage” that occurs to Colectivo’s property and for other losses resulting from the damage. The COVID-19 pandemic restrictions caused Colectivo to lose business income, so Colectivo filed a claim with Society to recover their lost income. However Society denied Colectivo’s insurance claim, arguing that “Colectivo had not suffered a ‘direct physical loss” but rather experienced restrictions on its property use. Colectivo then filed a class action complaint against Society for breach of contract damages.

Judge Rebecca Frank Dallet wrote the court’s ruling which stated that businesses are not entitled to property insurance coverage by Society Insurance for losses that resulted from the COVID-19 pandemic and US government-imposed restrictions on in-person dining. The court also ruled that in-person dining restrictions did not constitute a direct physical loss of property or damage to property under the insurance company’s policy. Additionally the court found that the presence of COVID-19 within bars or restaurants that cause the establishment to suspend operations is not covered under the policy’s “contamination provision.”