Ad Firm Gannon & Associates Sues Insurers for COVID-19 Business Interruption Coverage

NEW YORK — Marketing and advertising agency Gammon and Associates has sued its insurers in federal court, demanding coverage for losses arising from COVID-19 governmental stay-at-home orders.

In a May 19 complaint filed in the U.S. District Court for the Southern District of New York, the agency seeks a ruling that the orders trigger coverage under its policy because they caused its Manhattan and Burbank, Calif., offices to sustain direct physical loss and damage.

“The virus is physically impacting Plaintiff. Any effort by the Defendants to deny the reality that the virus causes physical loss and damage would constitute a …