Key West Hotel Owner Sues Zurich American for Coverage of COVID-19 Losses

KEY WEST, Fla. — The owner of several Key West hotels, restaurants and commercial properties has sued Zurich American Insurance Co. in federal court, demanding coverage for losses it sustained when state lawmakers closed all non-essential businesses due to the COVID-19 pandemic.

In a July 8 complaint filed in the U.S. District Court for the Southern District of Florida, Spottswood Companies Inc. contends that the civil authority orders and the presence of the virus itself caused direct physical loss of/or damage to the covered properties, triggering coverage.

The presence of COVID-19 caused direct physical loss of/or damage to the covered …