No Physical Loss At NY Inn, Insurer Tells 2nd Circ.

By Ben Zigterman (September 21, 2021, 7:31 PM EDT) -- A New York federal judge correctly found that pandemic orders don't qualify a Catskill Mountains inn and restaurant for business-interruption coverage, Union Insurance Co. told the Second Circuit.

The Deer Mountain Inn didn't sustain a "direct physical loss" that would qualify it for coverage, Union argued Monday, especially since it previously argued the virus wasn't present at its Tannersville location.

The inn's policy with Union also included a virus exclusion that would prevent coverage, the insurer argued in its brief.

"Every New York court to address these issues, and a veritable tidal wave of courts nationwide, including the Eighth and Eleventh...

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