N.Y. Steak House’s COVID-19 Coverage Action Dismissed for Lack of ‘Direct Physical Loss’

  • Order

NEW YORK — A New York federal judge has dismissed a Manhattan steak house’s COVID-19 business interruption coverage action, ruling that the restaurant’s suspension of operations was “caused by direct physical loss of or damage” to insured property.

In a Dec. 11 order, Judge John P. Cronan of the U.S. District Court for the Southern District of New York concluded that the policy issued by Admiral Indemnity Co. clearly requires “direct physical” damage to property as a condition for coverage and that “loss of use of” the premises does not meet that requirement.

In a June 16 complaint, Michael Cetta …


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