Karen M. Lager, a partner in our New York City office successfully obtained the dismissal of a declaratory judgment action filed by a dental practice, seeking a ruling that Plaintiff’s dental practice is insured for “business losses” related to the Covid-19 pandemic under its commercial property insurance policy.

The plaintiff sought Business Income, Extra Expense and Civil Authority coverage due to the State and local orders mandating that all non-essential in store businesses cease or restrict operations.  Plaintiff argued that they sustained significant business losses as a result of being unable to operate at full capacity during the pandemic.

In dismissing the case, Judge Larry Martin, of Kings County Supreme Court held that the policy’s virus exclusion superseded any of the policies coverage inclusions.  The court further held that plaintiff’s argument that the “global scale” of the pandemic nullified the Policy’s express virus exclusion was without contractual, statutory or judicial support. 

To see the Opinion, please click here