Superstorm Sandy Business Losses Caused by Interruption of Natural Gas Supply Not Covered, N.Y. Judge Rules

MINEOLA, N.Y. — A commercial property insurer is not responsible for covering business income losses that occurred after a utility service shut off natural gas supplies to a New York manufacturing plant during Superstorm Sandy, a state court has ruled.

In a Jan. 7 decision, Nassau County Supreme Court Justice James P. McCormack ruled that coverage for the nearly $35,000 claim is unavailable because the insured’s property sustained no physical damage as a result of the loss of natural gas.

Justice McCormack also agreed with Lancer Indemnity Co.’s contention that a utility service exclusion in the plant’s policy prevents any …