Fla. Bar Suffered No ‘Direct Physical Loss’ of Property, Federal Judge Rules

  • Order

TAMPA, Fla. — A Florida “retro arcade and bar” is not entitled to coverage for COVID-19-related losses from Colony Insurance Co. because it did not sustain “direct physical loss” of covered property, a Florida federal judge has ruled.

In a May 12 order, Judge Mary Scriven of the U.S. District Court for the Middle District of Florida explained that MCML Holding Company LLC d/b/a Galaxy Bar did not experience an actual diminution of the property’s value or tangible damage to the property.

Galaxy Bar filed a claim for business interruption coverage with Colony after it was forced to temporarily suspend …


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