Restaurant Conglomerate Loses Bid for COVID-19 Coverage in Conn. Federal Court

  • Order

HARTFORD, Conn. – A Connecticut federal judge has dismissed a restaurant conglomerate’s COVID-19 business interruption coverage action, agreeing with Hartford Fire Insurance Co. that there was no “direct physical loss of or damage to” the insured properties.

Applying New York law, Judge Vanessa Bryant of the U.S. District Court for the District of Connecticut concluded that the policy clearly requires SA Hospitality Group LLC to show “demonstrable physical harm of some form to the premises itself, rather than forced closure of the premises for reasons exogenous to the premises themselves, or the adverse business consequences that flow from such closure.” …


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