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ASCENT HOSP. MGMT. CO. V. EMPS. INS. CO. OF WAUSAU



In Ascent Hospitality Management Co. v. Employers Insurance Company of Wasau, the United States Court of Appeals for the Eleventh Circuit addressed claims brought by a hotelier seeking a declaration that its financial losses due to COVID-19 government restrictions were covered under an all-risks insurance policy along with damages stemming from “breach of contract, bad faith, fraudulent misrepresentation, and fraudulent suppression.” The United States District Court for the Northern District of Alabama initially dismissed all but the fraudulent misrepresentation claims against both insurers, but ultimately dismissed these remaining claims as well. The Eleventh Circuit affirmed the district court’s dismissal, holding that coverage under the all-risks policy was limited to “direct physical loss or damage,” which does not include lost profits related to the pandemic.





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