Clothing Retailer Loses Battle for COVID-19 Coverage in N.Y.



DOCUMENTS
  • Order


NEW YORK — A New York judge has dismissed a clothing retailer’s COVID-19 coverage action against Zurich American Insurance Co., ruling it did not sustain “direct physical loss, damage or destruction to property,” as required by the policy.

In a Jan. 27 order, Judge Leon Ruchelsman of the Kings County (N.Y.) Supreme Court found the policy clearly requires “direct physical loss” to trigger coverage.

Rainbow USA Inc. owns more than 1,000 women’s clothing stores across the United States, U.S. Virgin Islands and Puerto Rico. In March 2020, Rainbow was forced to close or limit operations in its stores due to …






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