Law Firm’s Losses Caused by Breakdown in Telephone Service During Sandy Not Covered, N.Y. Judge Rules

MINEOLA, N.Y. — A law firm’s loss of business income caused by flooding at its Manhattan-based telephone service provider is not covered under the firm’s policy because the loss of services do not qualify as those of a “dependent property,” a New York judge has ruled.

In a May 5 order, Judge Anthony L. Parga of the Nassau County Supreme Court noted the policy defines “dependant property” as “premises operated by others for your account,” but does not include “water, communications, or power supply services.”

Cohen and Slamowitz LLP (C&S), a Woodbury, N.Y., law firm that provided debt collection services, …