Philly Deli Loses Bid for COVID-19 Coverage in Federal Court

PHILADELPHIA — A federal judge has dismissed a Philadelphia delicatessen’s COVID-19 coverage action against Allied Insurance Company of America, ruling that its economic losses were not caused by “direct physical loss of or damage to property,” as required by the policy.

In a Sept. 9 order, Judge Cynthia M. Rufe of the U.S. District Court for the Eastern District of Pennsylvania found Fuel University City LLC did not sustain damage that required property to be “repaired, rebuilt or replaced,” as mandated by the policy.

Fuel operates Fuel Recharge, which was forced to limit operations beginning in March 2020 in compliance …