Pa. Vending Services Co. Not Entitled to COVID-19 Coverage, Federal Judge Rules

PHILADELPHIA — A Pennsylvania vending machine company is not entitled to coverage for COVID-19-related business losses because it did not sustain “direct physical loss of or damage to” its insured warehouse, a federal judge has ruled.

In a May 13 order, Judge Cynthia Rufe of the U.S. District Court for the Eastern District of Pennsylvania explained that RDS Vending LLC cannot show that COVID-19 or government stay-at-home orders caused a “distinct, demonstrable, physical alteration” of property.

RDS Vending is Philadelphia’s largest provider of vending machine, coffee service, and pantry products and services. It provides those services to a variety …