Sentinel Insurance Avoids Covering NYC Gallery’s Pandemic Losses

A widely used Sentinel Insurance Co. policy doesn’t cover a New York City fine art gallery’s extra expenses and financial losses from closing its space to the public under the state’s March 2020 Covid-19 orders, the Second Circuit ruled Monday.

The circumstances didn’t create the “direct physical loss” to the property required for coverage under two policy provisions, Judge Raymond J. Lohier Jr. said for the appeals court.

Nor can 10012 Holdings Inc., which does business as Guy Hepner, get compensation under a provision for “civil authority” orders that block access while addressing a physical risk to neighboring properties, the ...