N.Y. Art Gallery Not Covered for COVID-19 Losses, 2nd Cir. Affirms



DOCUMENTS
  • Opinion


NEW YORK — A Manhattan fine arts gallery is not entitled to coverage from Sentinel Insurance Co. for COVID-19-related business losses because it did not allege “direct physical loss of or damage to” its property as required by the policy, the 2nd Circuit U.S. Court of Appeals has affirmed.

In a Dec. 27 opinion, the appellate court concluded that 1102 Holdings Inc. d/b/a Guy Hepner may have had limited use of its gallery when it closed in compliance with government closure orders, but it did not sustain a loss of physical property.

Beginning in March 2020, Guy Hepner was temporarily …

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