Zurich Fails to Dodge Westin Hotel Owner’s Covid Coverage Suit

Zurich American Insurance failed to quash a hotel owner’s lawsuit for insurance coverage of pandemic-related booking cancellations.

The Zurich Insurance subsidiary needed to—but could not—demonstrate that Westin Excelsior Rome hadn’t suffered hotel booking cancellations, said Judge Gary Feinerman of the US District Court for Northern Illinois Friday.

Zurich acknowledged that the insurance policy covers hotel owner Q Excelsior Italia’s losses from booking cancellations. But the insurer sought to dismiss the case by arguing that Q Excelsior has already reached a $5 million limit for “cancellation of bookings,” according to the ruling.

But the judge rejected Zurich’s argument because the hotel ...