Insurer Disclaims Coverage for N.Y. Condos’ COVID-19 Economic Losses

  • Complaint

NEW YORK — Employers Insurance Company of Wausau has sued the owners of three New York condominium buildings, seeking a declaration that it is not liable for COVID-19 business interruption claims because the insured properties did not sustain “direct physical loss or damage” as required by the policy.

In an Aug. 27 complaint filed in the U.S. District Court for the Southern District of New York, Wausau further contends that the alleged losses fall within the policy’s virus exclusion, which bars coverage for “contamination.”

The exclusion defines “contaminant” as “any foreign substance, impurity, pollutant, hazardous material, poison, toxin, pathogen …


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