Insurers have failed to win dismissal of a federal COVID-19 business interruption lawsuit against them by the luxury hotel chain Mandarin Oriental.
Judge John P. Cronan of U.S District Court in New York found that endorsement language about coverage for contagious disease in the hotel’s “special peril” policies could support breach of contract claims against the insurers for failing to consider or pay for any business interruption losses.
The judge denied a motion to dismiss the claims that was sought by HDI Global Insurance Co. and Assicurazioni Generali S.p.A. He found that the claims should no