Madison Square Garden Loses COVID-19 Coverage Appeal

NEW YORK — A New York appellate court has upheld a partial dismissal of Madison Square Garden’s COVID-19 coverage action, affirming that it did not sustain “direct physical loss or damage” caused by the pandemic and related government closure orders.

In a Feb. 9 opinion, the New York Appellate Division, 1st Department, explained that to recover under the terms of policies that insure against physical loss or damage, the plaintiffs must allege actual physical damage.

“Accordingly, alleging loss based on COVID-19-related closures is insufficient to state a cause of action for breach of contract and insufficient to warrant coverage …