N.Y. Casino Not Covered for COVID-19 Losses, Federal Judge Rules

UTICA, N.Y. — A federal judge has dismissed a COVID-19 coverage action filed by the owner of a New York casino and resort, ruling that government closure orders issued in response to the pandemic were not the “direct result of physical damage” as required by the policy’s Civil Authority provision.

In an April 15 order, Judge David N. Hurd of the U.S. District Court for the Northern District of New York found the inclusion of the modifier “physical” “clearly imposes a requirement that the damage actually be tangible in nature; i.e., this language unambiguously requires some form of physical harm …