Supply Chain Council of European Union | Scceu.org
Distribution

Manhattan Diamond Dealer’s Virus Coverage Suit Tossed

by scceu0409

By Eli Flesch (December 15, 2021, 7:27 PM EST) — A Manhattan diamond wholesaler isn’t entitled to coverage of its pandemic losses from a CNA unit, a New York federal judge ruled, pointing to an “avalanche of authority” supporting the notion that the coronavirus doesn’t cause any covered physical damage.

U.S. District Judge John P. Cronan on Tuesday cited a series of decisions including his own in finding that J. Kleinhaus & Sons didn’t adequately show that government closure orders meant to curb the spread of the virus caused any insurable damage or loss.

The decision is yet another to go against a policyholder in a federal dispute over pandemic coverage….

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