N.Y. Appellate Court Upholds Dismissal of Restaurant Group’s COVID-19 Coverage Action




NEW YORK — A New York appellate court has upheld dismissal of a restaurant conglomerate’s COVID-19 coverage action filed against Westport Insurance Corp. affirming that it did not sustain “direct physical loss or damage” to its insured properties as required by the policy.

In an April 7 opinion, the New York Supreme Court, Appellate Division, ruled that mere loss of use, without physical damage, does not trigger coverage.

Consolidated Restaurant Operations, a global restaurant group, temporarily ceased on-premises dining operations in March 2020, in compliance with government stay-at-home orders issued in response to the COVID-19 pandemic. As a result, CRO …






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