N.Y. Inn Loses Appeal for COVID-19 Coverage in 2nd Circuit



DOCUMENTS
  • Summary Order


NEW YORK — A New York inn is not entitled to coverage from Union 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 March 1 summary order, the appellate panel explained that under New York law, “direct physical loss” and “physical damage” do not extend to mere loss of use of a premises where there has been no physical damage.

Beginning in March 2020, Deer Mountain Inn, a country inn and restaurant located …






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