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Virginia Supreme Court Denies Review Of Hotels’ COVID-19 Coverage Suit (Insurance Law Alert)

04.29.22

(Article from Insurance Law Alert, April 2022)

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The Virginia Supreme Court declined to accept an appeal from several hotels seeking property insurance coverage for COVID-19-related business losses. Crescent Hotels & Resorts LLC v. Zurich American Ins. Co., 2022 WL 1124493 (Va. Apr. 14, 2022). A Virginia trial court had granted the insurers’ motion to dismiss, finding that “physical loss or damage” was unambiguous and did not encompass claims that the virus was present at insured property. Crescent Hotels & Resorts, LLC v. Zurich American Ins. Co., 2021 WL 3679210 (Va. Cir. Ct. Aug. 18, 2021). The trial court also held that exclusions for contamination and pollution barred coverage in any event. In a summary order, the Virginia Supreme Court refused the petition for appeal, finding “no reversible error” in the judgment below.