Pa. Restaurant Files Class Action Against Donegal Insurance for COVID-19 Losses

PHILADELPHIA — A Pa. sandwich shop has filed a class action against Donegal Insurance Group, seeking to recoup losses it sustained when COVID-19 and related civil authority orders forced it to shut down for in-store dining.

In a May 28 complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Crunch Logistics Inc. t/a Monty’s Sandwich Shop maintains that policyholders have sustained direct physical loss of or damage to property, triggering coverage.

Donegal says its policies do not cover COVID-19-related business interruption losses because they fall within the policy’s exclusion for “virus or bacteria,” Monty’s contends. …