Key West Hotel Owner Loses Battle for COVID-19 Business Interruption Coverage

  • Order

KEY WEST, Fla. — A Florida federal judge has dismissed a COVID-19 coverage action filed by the owner of several Key West hotels and restaurants against Zurich American Insurance Co., ruling that government closure orders and the virus itself does not cause direct physical loss of or damage to property.

In a June 14 order, Judge K. Michael Moore of the U.S. District Court for the Southern District of Florida said “there is no way to plausibly allege the physical manifestation of economic headwinds caused by the COVID-19 pandemic.”

Spottswood Companies Inc. owns and operates numerous hotels, timeshares, restaurants, marinas, …


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