N.Y. Hotel Loses Battle for COVID-19 Coverage Against Affiliated FM

NEW YORK — The owners of an historical Brooklyn hotel that provides student housing and retail space have lost their battle against Affiliated FM Insurance Co. for coverage of $9.6 million in losses it sustained during the COVID-19 pandemic.

In a Dec. 20 order, Judge Diane Gujarati of the U.S. District Court for the Eastern District of New York ruled that St. George Hotel Associates LLC and Henry Clark Associates Inc. did not sustain “physical loss or damage” to their property, as required by the policy’s various coverage provisions.

“The second amended complaint does not allege facts that demonstrate physical …