Boston Restaurant Group Not Covered for COVID-19 Losses, Federal Judge Rules

BOSTON — The owner of various Boston eateries and entertainment venues cannot recoup its COVID-19-related business income losses and expenses from RSUI Indemnity Co. because it did not sustain “direct physical loss” of property, a Massachusetts federal judge has ruled.

On Nov. 12, Judge Denise Casper of the U.S. District Court for the District of Massachusetts explained there was no tangible alteration to the insured property, and mere “loss of use” does not trigger coverage under the policy.

Glynn Hospitality Group Inc., which operates several Boston restaurants, bars, pubs and entertainment venues, sustained significant economic losses beginning in March 2020 …