Philly Restaurants Not Entitled to Coverage for COVID-19 Business Losses, Judge Rules

  • Order

PHILADELPHIA — Two Philadelphia restaurants are not entitled to coverage for their COVID-19-related business interruption losses because they did not sustain “direct physical loss of or damage to property,” as required by their policies issued by Admiral Indemnity Co., a federal judge has ruled.

In a Dec. 17 order, Judge Timothy J. Savage of the U.S. District Court for the Eastern District of Pennsylvania held that property damage requires “a distinct, demonstrable, physical alteration of the property” and that pure economic damages are intangible and do not constitute property damage.

Newchops owns and operates Chops, a Philadelphia steakhouse, and LH …

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