N.Y. Judge Partially Dismisses Versace Mansion Hotel’s COVID-19 Coverage Action

NEW YORK — A New York judge has partially dismissed a COVID-19 coverage action filed by the owners of a hotel and restaurant in the Versace Mansion in Miami, ruling they failed to allege “direct physical loss of or damage to property,” as required to trigger business income coverage.

However, in the Nov. 10 order, Judge Barry Ostrager of the U.S. District Court for the Southern District of New York ruled that Zurich American Insurance Co.’s motion to dismiss plaintiffs’ breach of contract claim as it pertains to the policy’s communicable disease provision is premature.

VMSB LLC and VM South …