6th Cir. Upholds Dismissal of Ohio Hotel Owner’s COVID-19 Coverage Action

CINCINNATI — A 6th Circuit U.S. Court of Appeals panel has upheld dismissal of a hotel owner’s COVID-19 business interruption coverage action, affirming that it failed to allege “direct physical loss of or damage to” insured property, as required by the policy.

On Dec. 21, the appellate panel agreed with the U.S. District Court for the Northern District of Ohio hat the policy, issued by The Travelers Indemnity Company of America, requires “tangible loss of or harm” and does not cover mere loss of intended use.

The panel cited the Ohio Supreme Court’s recent ruling in Neuro-Commc’n Servs., Inc. …