Phila. Law Firm Loses Bid for COVID-19 Business Interruption Coverage

PHILADELPHIA — A Philadelphia law firm is not entitled to COVID-19 business interruption coverage from Valley Forge Insurance Co. because it did not sustain “direct physical loss” of property as required by the policy, a judge has ruled.

In a June 17 order, Judge Nina Padilla of the Philadelphia County Court of Common Pleas explained that because Spector Gadon Rosen Vinci P.C.’s law offices experienced no change in its physical condition, coverage was not triggered.

The law firm argued that because government orders issued in response to the pandemic prevented it from using its office, coverage is available under the …