Hotel Co. Loses Battle for COVID-19 Coverage in 11th Cir.
January 17, 2022
ATLANTA — The 11th Circuit U.S. Court of Appeals has upheld dismissal of a hotel and restaurant company’s COVID-19 coverage action, ruling that it did not sustain “a direct physical loss or direct physical damage to” covered property, as required by the policies.
On Jan. 14, the panel agreed with the lower court that COVID-19 particles do not cause “tangible, concrete” harm to property as required to trigger coverage.
New-York based Ascent Hospitality Management Company LLC operates hotels and restaurants at 35 locations in Alabama, Georgia, Tennessee, Mississippi, and Indiana. The hotels include Marriott, Hampton Inn, Holiday Inn, LaQuinta Inn, …