STORY FROM: Superstorm Sandy Insurance Litigation

Losses Caused by Con Edison’s Power Shutoff Excluded From Coverage, N.Y. Judge Rules

NEW YORK — A restaurant’s business interruption losses caused by Con Edison’s decision to shut off power in anticipation of Superstorm Sandy fall within the policy’s exclusion for off-premises interruption to utility service, a New York state judge has ruled.

On March 9, Judge Geoffrey D. Wright of the New York County Supreme Court reasoned that, even if the loss of power was tied to flooding, the loss of power was ultimately due to Con Edison’s anticipatory shut down. As such, the losses fell within the exclusion, the judge ruled.

CAC 3 LLC sought business losses sustained by its New ...

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