Hotel’s COVID-19 Losses May Be Covered Under ‘Crisis Event’ Provision, Ala. Federal Judge Rules

BIRMINGHAM, Ala. — An Alabama federal judge has allowed a boutique hotel owner to amend its claims against Cincinnati Insurance Co. to the extent it seeks coverage for COVID-19-related losses under the policy’s Crisis Event coverage provision, finding it does not require “direct physical loss or damage” to property.

In an Aug. 27 order, Judge R. David Proctor of the U.S. District Court for the Northern District of Alabama explained that the different types of coverage within that section are based upon the presence of a “covered crisis event,” not “direct physical loss or damage.”

SJP Investment Partners LLC …