Office’s Superstorm Sandy-Damaged Basement Generator Subject to Coverage Sublimit, 2nd Cir. Holds

NEW YORK — A federal appeals court has upheld a ruling in favor of an insurer that refused to pay more than $50,000 to a New York financial firm for Superstorm Sandy damage to a $2.2 million generator that was located in the basement of the firm’s high-rise office building.

In an Oct. 16 decision, the 2nd Circuit U.S. Court of Appeals affirmed the trial court’s award of summary judgment to Aspen America Insurance Co. on breach of contract and bad faith claims, concluding that language in a policy covering physical damage to the firm’s office required no more than …