Wash. Luxury Hotel Owner Sues Fireman’s Fund for COVID-19 Coverage

SEATTLE — A Washington luxury hotel owner has accused Fireman’s Fund Insurance Co. of denying its claim for coverage of COVID-19-related business interruption losses in bad faith, arguing that it sustained “direct physical loss of use or damage” to the insured properties.

In an Oct. 13 complaint filed in the U.S. District Court for the Western District of Washington, Worthy Hotels Inc. and its affiliates contend that they suffered physical loss of use of the covered properties for their intended purpose caused by the risk and/or actual presence of COVID-19 and/or related government closure orders.

Worthy owns a number of …