N.Y. Judge Tosses Theatre’s COVID-19 Coverage Action for Lack of ‘Direct Physical Loss of or Damage’

MINEOLA, N.Y. — A New York judge has ruled in favor of an insurer and two brokers in a cinema’s COVID-19 business interruption coverage case, ruling that there was no “direct physical loss of or damage” to property, as required by the policy.

In a Feb. 10 order, Judge Timothy S. Driscoll of the Nassau County Supreme Court agreed with Great American Insurance Co. that under New York law, “economic loss unrelated to any demonstrable physical alteration to the property” is not covered.

Soundview Cinemas Inc. operates a movie theater in Port Washington, N.Y. In early March 2020, it was …