Manhattan Diamond Dealer Loses Bid for COVID-19 Coverage

NEW YORK — A federal judge has dismissed a Manhattan diamond dealer’s COVID-19 coverage action against Valley Forge Insurance Co., ruling that the virus does not cause “physical loss or damage” to property for insurance purposes.

In a Dec. 14 order, Judge John P. Cronan of the U.S. District Court for the Southern District of New York found that while J. Kleinhaus & Sons LLC could not use its premises for its intended use does not mean there was “physical loss of or damage to” the property.

“This conclusion that COVID-19 did not trigger coverage under the Policy follows …