Pa. Tavern Entitled to Coverage for ‘Loss of Use’ Caused by COVID-19, Judge Rules

PITTSBURGH — A Pennsylvania judge has ruled that a tavern is entitled to coverage from Erie Insurance Exchange for COVID-19-related losses under the policy’s Income Protection provision, ruling that “direct physical loss of or damage to” includes loss of use of property.

In a May 25 order, Judge Christine Ward of the Allegheny County Court of Common Pleas explained that MacMiles LLC d/b/a Grant Street Tavern’s loss of use of its property due to the spread of the virus and social distancing measures was “direct” and “physical,” as required by the policy.

Grant Street was forced to suspend operations …