In an opinion Friday, Judge Cronan dismissed with prejudice a suit brought by Sparks Steak House against its insurance company seeking to recover for business interruption losses arising from the COVID-19 pandemic. The policy covered, as is common in property insurance policies, “direct physical loss of or damage to property” at the premises, and Sparks argued that its inability to use the premises as a steakhouse fell within that language. Judge Cronan disagreed, using illustrations of how the policy language would be used in everyday experience:
Continue Reading Judge Cronan: Sparks Steak House’s Business Interruption Insurance Policy Not Triggered by COVID-19 Because the Pandemic Did Not Cause “Direct Physical Loss” of Property