N.Y. Restaurant Owners Say COVID-19 Orders Caused ‘Direct Physical Loss’

PHILADELPHIA — The owners of four Manhattan restaurants have sued Indemnity Insurance Company of North America for coverage of losses they incurred when they were forced to cease and/or limit operations in compliance with COVID-19-related government shutdown orders.

In a Sept. 21 class action complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, plaintiffs contend they suffered “direct physical loss of or damage” to their insured premises, resulting in interruptions or suspensions of business operations at the locations.

Plaintiffs are Schatzi Corp., YKG Corp., KG715 Inc. and S&D Group Dining LL. They operate the Wallse, Café …