Okla. Hampton Inn Owner Not Entitled to COVID-19 Coverage, Federal Judge Rules

OKLAHOMA CITY — The owner of a Hampton Inn is not entitled to COVID-19 business interruption coverage from Columbia Insurance Group because it did not sustain “direct physical loss” as required by the policy, an Oklahoma federal judge has ruled.

On June 28, Judge David L. Russell of the U.S. District Court for the Western District of Oklahoma held that to trigger coverage, Govinda LLC d/b/a Hampton Inn Midwest City needed to allege “tangible damage” to property, which it has not done.

Govinda sustained business income losses beginning in March 2020, when government orders issued in response to the …