2nd Cir. Upholds Dismissal of N.Y. Restaurant’s COVID-19 Coverage Action



DOCUMENTS
  • Summary Order


NEW YORK — A federal appellate court has upheld dismissal of a New York restaurant’s COVID-19 insurance action Against Nationwide Mutual Insurance Co., ruling it did not sustain “direct physical loss or damage” to insured property, as required to trigger coverage.

On April 8, the 2nd Circuit U.S. Court of Appeals panel ruled that under New York law, the terms “direct physical loss” and “physical damage” do not extend to mere loss of use of a premises, without physical damage.

BR Restaurant Corp. d/b/a Bruno’s Ristorante Italiano sustained economic losses beginning in March 2020 when government orders issued in response …






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