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Alaska Supreme Court says most business insurance doesn't cover COVID-19 damages • Alaska Beacon

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Alaska Supreme Court says most business insurance doesn't cover COVID-19 damages • Alaska Beacon


In a first-of-its-kind ruling, the Alaska Supreme Court said Friday that the COVID-19 pandemic does not qualify as “physical loss” or “damage” under common commercial insurance policies.

The decision likely means that insurance companies will not have to pay most claims related to business losses caused by COVID-19.

The ruling came in response to an unusual “certified question” request from Alaska’s U.S. District Court. All 49 other state supreme courts have considered similar questions about COVID-19 liability, but until Friday, Alaska’s had not. 

“Even with our insured-friendly approach to interpreting insurance contracts, we conclude that neither the presence of the COVID-19 virus at an insured property nor operating restrictions imposed on an insured property by COVID-19 pandemic-related governmental orders is ‘direct physical loss of or damage to’ property. ‘Direct physical loss of or damage to’ property requires a tangible or material alteration of property,” wrote Justice Susan Carney on behalf of the court.

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The court’s decision, rendered unanimously, has major financial implications: If the court had decided differently, the ruling could have allowed businesses to collect millions of dollars from their insurance policies to cover the costs of COVID-mandated closures and health restrictions. 

In an amicus brief, the American Property Casualty Insurance Association said insurance premiums would rise as a result if insurers were required to pay out more. 

The Supreme Court was asked to rule after Baxter Senior Living filed suit two years ago against its insurance company, Zurich American.

Baxter operates a senior home in Anchorage and spent money to enact anti-COVID procedures that also limited its operations. Local anti-COVID rules also restricted its operations. The company filed a claim in 2020 with Zurich American, but the company denied the claim. 

At the time, Zurich American said Baxter’s policy covered “direct physical loss of or damage to” property, and it argued that “(n)either the mere presence of the COVID-19 virus … or any generalized threat from its presence constitutes the ‘direct physical loss of or damage to’” Baxter’s property under the policy.

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Baxter challenged the denial in state court, and the insurer moved the case to federal court, which then asked the Alaska Supreme Court to decide whether the presence of COVID-19 constitutes “direct physical loss” or “damage” to property, and whether governmental orders pertaining to COVID-19 also constitute that loss or damage.

“Our answer to both questions is ‘no,’” Carney wrote in Friday’s published order.

Explaining at length, the order says that meeting the policy’s standard language requires “a physical alteration of property,” and COVID-19’s presence on a surface doesn’t alter its property.

“An analogy between the COVID-19 virus and water illustrates this point,” Carney wrote in Friday’s order. “COVID-19 is to property what water is to a plastic sheet: water does nothing to a plastic sheet but at most, it stays on it or attaches to it. But water transforms, alters, or changes the state of dry paper into a wet “mush” or makes it much easier to tear.”

“We conclude that ‘direct physical damage’ requires physical alteration of property. But because COVID-19 does not physically alter property and merely attaches to it, the presence of COVID-19 on property does not constitute ‘direct physical damage.’”

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Friday’s order marked the first time since 2021 that the court had been asked to consider a certified question from the state’s federal court.

With the question resolved, the case returns to federal court for further proceedings.

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Alaska

Governor Dunleavy Appoints Two Members to Alaska House of Representatives – Mike Dunleavy

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Governor Mike Dunleavy today announced the appointments of Garret Nelson and Steve St. Clair to the Alaska House of Representatives.

St. Clair will represent will District 26. He has lived in Wasilla for 15 years, is a retired Military Police First Sergeant, and spent 7 years in Juneau as a legislative staffer.

Nelson will represent District 29. Nelson and his family have lived in Sutton for 9 years and he is chair of the Sutton Community Council.

“I appreciate the willingness of these Alaskans to step forward to serve at a pivotal time for our state. Their experience and commitment to their communities will help ensure their districts continue to have a strong voice in the Alaska House of Representatives,” said Governor Dunleavy.

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The Governor also thanked all the applicants who allowed their names to be put forward and for their willingness to serve our state.

Nelson and St. Clair will assume their House duties upon confirmation in accordance with Alaska law.



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Denali National Park offering unique holiday experience

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Denali National Park offering unique holiday experience


ANCHORAGE, Alaska (KTUU) – Denali National Park & Preserve is offering travelers a unique way to celebrate the holiday season at the base of North America’s tallest peak.

“It’s a great place to come if you’re into snow and being cold,” said Amber Smigiel, Public Affairs Officer for Denali National Park and Preserve.

“If you come at night, you probably have a chance to see the auroras, and it is really beautiful here during the winter.”

Despite the cold and storms associated with winter at Denali, Smigiel said adventure-seekers are still allowed to attempt a summit of Mount McKinley.

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“We don’t have any staff up there, so you’re pretty much on your own,” she said.

“We definitely don’t recommend doing it by yourself. Only, I think, 17 people have ever summited during winter, so it’s not a very realistic goal, but you know what? We’re not going to stop you if you want to try.”

For those looking for a calmer experience, Smigiel said there are several events and accommodations planned at the base of the mountain.

“The road is closed at mile 3 for cars, but you can ski, hike, snowshoe on the road and some of the hiking trails in the front country or even farther in the backcountry,” she said.

“You can winter camp if you’d like. We have our permits for that so you can come and sleep in the snow if that’s your thing. Our visitor center has snowshoes and the spikes, snow spikes, so you can go and rent some of that while you’re here.”

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While Denali’s iconic bears are mid-hibernation, Smigiel said animal lovers still have a chance to catch a glimpse of the local wildlife.

“The kennels are open from one to four on Saturday and Sunday, so you can come see the dogs and the puppies during the winter,” she said.

“There are still moose and caribou and wolves. The moose sometimes come closer to the front of the park because they like to use the road just as much as people do.”

While visitors are welcomed to book a stay at Denali, Smigiel told Alaska’s News Source that some amenities may not be available during the winter.

“The one thing that you need to remember when you come to Denali during the winter is that there’s one restaurant and one grocery store and two gas stations that are open and those are about 10 miles from the park,” she said.

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“Make sure that you have all your provisions with you, water, snacks, all that kind of stuff. We do have an indoor picnic area where you can go and get warm and, you know, fill your water bottles up and that kind of thing, but nothing that you can purchase while you’re in the park.”

Although current weather conditions have caused the park to reschedule, Smigiel said that rangers are planning to host a “Ski and Stroll” for the winter solstice, where visitors are invited to walk trails near the park.

See a spelling or grammar error? Report it to web@ktuu.com



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Alaska’s Maxime Germain named to US Olympic biathlon team

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Alaska’s Maxime Germain named to US Olympic biathlon team


Alaska’s Maxime Germain was named to the U.S. Olympic biathlon team to compete at the 2026 Milano-Cortina Olympic Winter Games. (Photo provided by U.S. Biathlon)

Alaska’s Maxime Germain has been named to the U.S. Olympic biathlon team and will compete at the 2026 Milano-Cortina Olympic Winter Games.

Germain, 24, who was born in Juneau and graduated from West Anchorage High School in 2019, will be making his Olympic debut.

“I am stoked to have qualified,” Germain said in a U.S. Biathlon release. “The goal is now to perform there! It is going to be my first Olympics, but it shouldn’t be any different from other racing. Same venue, same racing, different name!”

The announcement was made Sunday at the conclusion of the World Cup stop in France. He is currently 34th in World Cup rankings, the second-best American behind Olympic teammate Campbell Wright.

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Germain has raced for the APU Nordic Ski Center and trained with the Anchorage Biathlon Club.

“Maxime has worked really hard throughout the off season, improving his mental game and bringing an overall level up to the World Cup this year,” U.S. Biathlon High Performance Director Lowell Bailey said in the release. “This showed right away at the first World Cup in Ostersund, where he proved he can be among the world’s fastest and best biathletes. Maxime will be a great addition to the U.S. Olympic team!”

Before coming to Anchorage, Germain grew up in Chamonix, France, and started biathlon there at age 13.

Germain is a member of Vermont Army National Guard as an aviation operations specialist and is studying to become a commercial pilot. Germain has trained with the National Guard Biathlon Team and races as part of the US Army World Class Athlete Program.

Germain joins Wright, Deedra Irwin and Margie Freed as the first four qualifiers for the 2026 Olympic Biathlon Team. The remaining members of the team will be announced on Jan. 6 following completion of the U.S. Biathlon Timed Trials.

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The 2026 Winter Olympics run from Feb. 6-22 in Italy.





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