Seattle Luxury Hotel Owner Loses Bid for COVID-19 Coverage

SEATTLE — A Washington federal judge has dismissed a luxury boutique hotel owner’s COVID-19 coverage action against Fireman’s Fund Insurance Co., ruling that the policy’s Communicable Disease provision requires “physical loss of or damage” to property, which did not occur.

In a July 22 order, Judge Barbara J. Rothstein of the U.S. District Court for the Western District of Washington further held there is no coverage under the provision because there was “no public health authority issued an order specifically evacuating [the plaintiff’s] premises to decontaminate or disinfect a known outbreak.”

First and Stewart Hotel Owner LLC owns the …