Hotel REIT Says Insurers Must Cover COVID-19 Losses

By Hope Patti (June 27, 2022, 4:30 PM EDT) -- A real estate investment trust asked a New York state court to find that the presence of COVID-19 and the virus that causes the disease triggers coverage under a $150 million all-risk insurance program, saying that a number of insurers wrongfully denied coverage of its pandemic-related losses.

Hospitality Investors Trust Inc. said in a complaint filed last Tuesday that seven primary and excess insurers breached its insurance contract, violated the New York Deceptive Practices Act and acted in bad faith while handling the company's claim.

For nearly two years, HIT said, "the insurers have pursued extraneous and never-ending information requests designed...

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