Tory Burch store on Regent Street in London. Credit: William Barton/Adobe Stock Appellate Division Relied on Precedent to Dismiss Tory Burch's COVID-19 Business Interruption Claims
"Thus, based on our holding in 'Mac Property,' we reject plaintiff's contention that respiratory particles—droplets and airborne aerosols—are physical substances that could have physically and tangibly altered its insured property," the opinion said. "Since the policies here require physical tangible alteration to property, and it has already been determined that coronavirus on surfaces could not physically alter property, factual and expert discovery would be futile."
December 06, 2023 at 05:22 PM
5 minute read
In an unpublished decision, the Appellate Division rejected arguments made by fashion brand Tory Burch in a suit filed against its insurer, Zurich American, for property damage and business interruption due to the COVID-19 virus and pandemic and for breach of contract.
Tory Burch purchased an all-risk insurance policy from Zurich American that insured against "direct physical loss or damage to" the company's property but contemplated only certain kinds of losses, according to the opinion. New Jersey's Gov. Phil Murphy declared a state of emergency in March 2020 which caused Tory Burch to close its retail stores to the public through May 2020.
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