COVID-19 Pandemic Triggered Coverage Under Erie Insurance Exchange Policy, Businesses Assert

PHILADELPHIA — Three small businesses have filed a class action complaint against Erie Insurance Exchange, seeking coverage for losses they sustained when civil authority orders issued in response to the COVID-19 pandemic forced them to suspend or reduce operations.

In a complaint filed June 17 in the U.S. District Court for the Eastern District of Pennsylvania, plaintiffs contend they have sustained direct physical loss and damage to property as a result of the pandemic and stay-at-home orders, triggering coverage under the Erie policies.

Plaintiffs High Tech Hair LLC, Capucinno Pizzeria Ristorante t/a Villa, and Rose Glam Hair Studio LLC are …