By Hope Patti (January 28, 2022, 5:32 PM EST) -- Zurich American Insurance has no obligation to cover fashion retailer Rainbow USA's losses from the COVID-19 pandemic, a New York court found, citing a growing consensus among courts that the virus doesn't cause physical loss or damage to property.
Justice Leon Ruchelsman of the Kings County Supreme Court granted the insurer's motion to dismiss Thursday, saying he did not find ambiguity in the policy's phrase "direct physical loss, damage or destruction to property."
Rainbow relied on grammar in its argument, saying damage does not have to be physical because it is not directly modified by the adjective. The judge disagreed....
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