Insurance Lawsuit Says Con Ed Explosion, Not Flood, Caused Superstorm Sandy Business Losses

NEW YORK — A New York company sued its insurers seeking damages for business losses it says are related to an explosion at a Consolidated Edison substation that left the company’s offices without power for several days following Superstorm Sandy.

In a June 5 complaint filed in New York County Supreme Court, Acolyte Technologies Corp. argues that the losses fit into an exception to a flood exclusion that the insurers have relied upon to deny the company’s claim for coverage.

According to the complaint, The Hanover Insurance Co. and Citizens Insurance Co. sold Acolyte a policy in April 2008 …