Travelers seeks to limit BI cover to hotel

Travelers Property Casualty Corp is taking action in New York federal court for declaration to limit business interruption (BI) cover to the owner of New York Millennium Hotel (CDL Hotels USA Inc, part of British Millenium & Copthorne Hotels plc). Of US$400mn coverage, only US$39.5mn for BI and other claims has been paid as yet, but Travelers argues that the cover ran for a maximum of one year from any single event, and the hotel has been closed since 11 September 2001.