Pa. Tavern Loses Federal Court Battle for COVID-19 Coverage

  • Order

PHILADELPHIA — A Pennsylvania federal judge has awarded an insurer judgment on the pleadings in a tavern’s COVID-19 coverage action, ruling that it failed to show it suffered “direct physical loss of or damage” as required by the policy issued by American Fire and Casualty Co.

On June 16, Judge John R. Padova of the U.S. District Court for the Eastern District of Pennsylvania found Spring House Tavern Inc. did not allege that any aspect of the physical structure of its premises was altered; therefore, coverage under the policy’s provisions for Business Income and Extra Expense is not available.

The …


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