Iowa high court affirms coverage ruling in favor of Nationwide unit

The Iowa Supreme Court ruled Friday that Nationwide Agribusiness Insurance Co.’s coverage for an agricultural cooperative’s loss of earnings and extra expense from an August 2020 derecho is limited to $3 million.

The state high court in Heartland Co-Op v. Nationwide Agribusiness Insurance Co. unanimously agreed with an appeals court’s June 2024 ruling that said the policy was unambiguous and did not provide loss of earnings and extra expense coverage for each of Heartland’s locations in Iowa, Nebraska, New Mexico and Texas.

West Des Moines, Iowa-based Heartland said 48 locations sustained damage from the derecho and submitted a claim to Nationwide. The insurer paid $3 million for loss of earnings and extra expenses and nearly $131 million for other losses and damage, court records show.

Heartland sued Nationwide for breach of contract after the insurer refused to cover the loss of earnings for each location affected by the storm. The trial judge awarded Nationwide summary judgment, and a two-judge appeals court majority affirmed the decision. Heartland then sought review from the Iowa Supreme Court.

Representatives for the parties did not respond to requests for comment.