Hotel Franchise Not Covered for COVID-19 Losses, 8th Cir. Affirms

  • Order

ST. LOUIS — The 8th Circuit U.S. Court of Appeals has affirmed that a hotel franchise cannot recover losses it sustained during the COVID-19 pandemic from Continental Casualty Co. because it failed to allege government closure orders cause “direct physical loss,” as required by the policy.

On June 28, the appellate panel agreed with the U.S. District Court for the District of Minnesota that “mere loss of use or function” of the insured properties does not constitute “direct physical loss or damage” within the meaning of the policy.

Torgerson Properties Inc. owns 40 hotels, restaurants, and event centers in Minnesota …


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