Koi Restaurant Sues Nova Casualty, Says Superstorm Sandy Losses Caused by Substation Explosion

NEW YORK — A well-known Japanese eatery in New York City has sued Nova Casualty Co. for coverage of more than $150,000 in business losses it sustained when an explosion at a nearby substation during Superstorm Sandy knocked out the restaurant’s power supply.

Koi NY Downtown LLC’s lawsuit, filed June 27 in New York County Supreme Court, accuses Nova Casualty of breach of contract and bad faith for denying the claim based on terms in the restaurant’s insurance policy that exclude coverage for losses caused by flood.

According to the lawsuit, Nova has insisted that the loss of revenue …