Texas Federal Judge Tosses Tech Company’s COVID-19 Coverage Action

DALLAS — A Texas federal judge has dismissed a COVID-19 coverage action filed by an information technology services company against Zurich American Insurance Co., ruling it did not sustain “direct physical loss of or damage to” property.

In a Jan. 21 order, Judge Karen G. Scholer of the U.S. District Court for the Northern District of Texas explained that mere “loss of use” does not trigger coverage.

NTT DATA International LLC and NTT DATA Services International Holdings BV operate a “global technology services company" that provides "information-technology services to clients in public and private sectors worldwide.” They alleged the COVID-19 …