Philly Optical Offices Lose Bid for COVID-19 Business Interruption Coverage

PHILADELPHIA — A federal judge has dismissed a COVID-19 coverage lawsuit filed against Twin City Fire Insurance Co. by the owner of two Philadelphia optical offices, finding there was no “direct physical loss of or physical damage to” the insured properties, as required by the policy.

In a Jan. 14 order, Judge Chad F. Kenney of the U.S. District Court for the Eastern District of Pennsylvania held that ATCM Optical, Inc., Omega Optical, Inc., Omega Optical at Comcast Center LLC d/b/a Omega Optical (Omega) failed to allege a “distinct, demonstrable, and physical alteration” of a structure.

Omega filed the action …