Consolidated Restaurant Operations v. Westport Insurance Corporation

Summary

The Court of Appeals held that the phrase “direct physical loss or damage” in CRO’s commercial property policy requires either a material physical alteration of insured property or complete and persistent dispossession of it. CRO’s allegations that coronavirus was present at its restaurants, caused temporary loss of use, and led to reduced or suspended operations did not satisfy that requirement. The Court therefore affirmed dismissal of the complaint and did not reach the policy exclusions.