Boston Restaurants Not Covered for COVID-19 Business Interruption Losses, Judge Rules

BOSTON — A Massachusetts federal judge has dismissed a COVID-19 coverage action filed against Greater New York Mutual Insurance Co. by two Boston restaurants, finding they failed to allege “direct physical loss of or damage to property,” as required by the policies.

In a March 9 order, Judge F. Dennis Saylor IV of the U.S. District Court for the District of Massachusetts agreed with a majority of court rulings that government COVID-19 orders limiting the restaurants’ operations to take-out or delivery only do not cause “direct physical loss” of property.

“The presence or threat of coronavirus does not constitute a …