Manhattan Hotel Owner Loses Bid for COVID-19 Business Interruption Coverage

NEW YORK — A New York federal judge has dismissed a boutique hotel owner’s COVID-19 coverage case against The Travelers Indemnity Insurance Company of America, ruling that the policy’s virus exclusion bars coverage.

In a June 8 order, Judge Jesse Furman of the U.S. District Court for the Southern District of New York added it is “doubtful” that the presence of COVID-19 itself causes “direct physical loss of or damage to property” as required by the policy.

100 Orchard Street LLC, which owns Blue Moon Hotel in Manhattan, alleged its business was severely damaged by the COVID-19 virus, which was …