W. Va. Federal Judge Dismisses Restaurant Owner’s COVID-19 Coverage Action

CHARLESTON, W. Va. — A West Virginia federal judge has dismissed a restaurant owner’s COVID-19 business interruption coverage action, ruling that State Automobile Insurance Co. is not obligated to pay for the losses because there was no “direct physical loss or damage” to insured property.

In a Jan. 5 order, Judge Joseph R. Goodwin of the U.S. District Court for the Southern District of West Virginia concluded that government shutdown orders do not damage or alter property, as required to trigger coverage under the policy.

Bluegrass LLC operates the Tricky Fish, Starlings and Bluegrass Kitchen restaurants in Charleston, W. …