The complaint dedicates significant space to discussing the physical attributes of the virus, its means of transmission and the damage that it can cause. (Credit: Kevin Burkett/ Wikimedia Commons)
Could the loss of use of a property due to the COVID-19 pandemic be considered "direct physical loss or damage?" An NBA team's dispute over denied insurance coverage is exploring the question.
The Philadelphia 76ers and SPF Owner LLC, which owns a 76ers training complex and office building in New Jersey, say the term should apply to damage caused by the pandemic. They are seeking declaratory judgment to reflect that interpretation after the Hartford Fire Insurance Co. declined to compensate them for lost income under the reasoning that the disease "does not constitute direct physical loss or damage."
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Aleeza Furman
Aleeza Furman is a Philadelphia-based litigation reporter with The Legal Intelligencer. Contact her at [email protected].
