COVID Shutdowns Should Trigger Coverage, Hotel Chain Says

By Elizabeth Daley (August 2, 2022, 6:44 PM EDT) -- A New Jersey hotel chain asked a Garden State federal judge not to dismiss its proposed class action alleging its insurers owe it for pandemic-related losses, arguing that insurance contracts' civil authority provisions don't require total business shutdowns.

Icona Resorts argued that the so-called civil authority provision in its policy with Westchester Surplus Lines Insurance Co. and other insurers, which covers business losses associated with certain government shutdowns, should apply to its coverage bid even though it wasn't required to completely close its businesses when New Jersey authorities ordered shutdowns to stop the spread of COVID-19 in early 2020.

Icona argued...

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