Insurer Says Philly Restaurant Suffered No 'Physical Damage' in Bid to Dismiss Action

PHILADELPHIA — Cincinnati Insurance Co. says it is not liable to reimburse a Philadelphia restaurant for business interruption losses it sustained when COVID-19 government orders forced it to temporarily close because no physical damage took place.

In a July 9 motion to dismiss filed in the U.S. District Court for the Eastern District of Pennsylvania, the insurer says Milkboy Philadelphia has not met its initial burden of showing actual direct physical loss to property.

“Plaintiff asks this Court to find the Policy applies to cover purely financial losses sustained as a result of COVID-19-related orders requiring non-essential businesses to cease …