N.Y. Law Firm Loses Battle for COVID-19 Coverage in Federal Court

NEW YORK — A New York federal judge has dismissed a law firm’s COVID-19 coverage action against Valley Forge Insurance Co., finding it did not sustain direct physical loss of or damage to covered property, as required by the policy.

In a Dec. 3 order, Judge LaShann Dearcy Hall of the U.S. District Court for the Eastern District of New York agreed with Valley Forge that an insured’s loss or damage must be tangible or concrete, and there must be actual, physical damage to trigger coverage.

“Plaintiff cites several cases which purportedly stand for the proposition that ‘loss of …