Philly Restaurant Owner Not Covered for COVID-19 Losses, Federal Judge Rules

PHILADELPHIA — A Pennsylvania federal judge has dismissed a restaurant owner’s COVID-19 coverage action against Zurich American Insurance Corp., ruling the policy’s Microorganism Exclusion applies to the losses because they were caused by a virus.

In a Jan. 7 order, Judge Karen S. Marston of the U.S. District Court for the Eastern District of Pennsylvania explained that the exclusion applies to losses “directly or indirectly” caused by a virus.

Big Red Management Corp. owns several restaurants in the Philadelphia area, including the White Dog Café and Louie Louie. In March 2020, Big Red temporarily halted dine-in operations in compliance with …