‘Cheers’ Bar Not Covered for COVID-19 Economic Losses, Mass. Federal Judge Rules

BOSTON — A Massachusetts federal judge has dismissed a COVID-19 business interruption coverage action filed by the owner of the famed “Cheers” bar and three other Boston businesses, ruling the policy’s requirement of “direct physical loss of or damage” was not met.

On Aug. 26, Judge F. Dennis Saylor IV of the U.S. District Court for the District of Massachusetts rejected Hampshire House Corp.’s argument that the threat or presence of COVID-19 at its properties did not cause physical loss or damage to a tangible object, such as a building.

“In sum, the threat or presence of the coronavirus in …