2nd Cir. Upholds Dismissal of COVID-19 Coverage Class Action



DOCUMENTS
  • Summary Order


NEW YORK — A 2nd Circuit U.S. Court of Appeals panel has upheld dismissal of a COVID-19 coverage action filed by three business owners against Sentinel Insurance Co., affirming that pandemic-related government closure orders do not cause “direct physical loss,” as required by the policies.

In a Sept. 19 summary order, the panel explained that under New York law, the policy terms “direct physical loss” and “physical damage” do not extend to mere loss of use of a premises; rather, there must be “actual physical loss of or damage to the insured’s property” to qualify for coverage.

The plaintiffs-appellants …






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