Ad Agency’s COVID-19 Coverage Action Dismissed for Lack of ‘Physical’ Damage

  • Order

NEW YORK — A COVID-19 coverage action filed by marketing and advertising agency Gammon and Associates was dismissed after a New York federal judge determined that it did not sustain “direct physical” loss or damage to its offices.

In an Aug. 31 order, Judge George B. Daniels of the U.S. District Court for the Southern District of New York explained that even if Gammon could adequately allege that COVID-19 was present in its Manhattan and Burbank, Calif., offices, the policy does not cover “loss of use” without physical damage.

Gammon alleged state and local government stay-at-home orders issued in response …


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