Zurich Beats Fashion Retailer's Pandemic Coverage Suit

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....

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!