Insurance Claim – Coverage

By: Derek Hawkins//February 28, 2022//

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7^th Circuit Court of Appeals

Case Name: Bradley Hotel Corp., v. Aspen Specialty Insurance Company

Case No.: 21-1173

Officials: MANION, WOOD, and HAMILTON, Circuit Judges.

Focus: Insurance Claim – Coverage

Like today’s decision in Crescent Plaza Hotel Owner, L.P. v. Zurich American Insurance Co., No. 21-1316 (7th Cir. Dec. 9, 2021), this case presents insurance coverage issues related to the partial closure of a hotel during the COVID-19 pandemic. While the parties are different, the result is the same. First, following our analysis in Sandy Point Dental, P.C. v. Cincinnati Insurance Co., No. 21-1186 (7th Cir. Dec. 9, 2021), we hold that the term “direct physical loss of or damage to” property does not apply to a business’s loss of use of the property without any physical alteration. Second, we conclude that the loss of use exclusion and the ordinance or law exclusion in this policy provide separate bars to coverage.

Affirmed

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Derek A Hawkins is Corporate Counsel, at Salesforce.

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