Phila. Restaurant Chain Says COVID-19 Caused ‘Physical Loss and Damage’

  • Complaint

PHILADELPHIA — A Philadelphia restaurant chain has sued State Automobile Insurance Co. and State Auto Insurance Cos., demanding coverage for losses it sustained when it was forced to close its dining rooms in compliance with state and local COVID-19 stay-at-home orders.

In a complaint removed to the U.S. District Court for the Eastern District of Pennsylvania on July 22, The Marathon Grill Inc., which operates restaurants in various locations throughout the city, contends that the orders and the virus itself caused “physical loss of and physical damage” to its insured property.

The State Auto policy insures against spoilage, business income …


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