Philly Art Gallery Loses Battle for COVID-19 Business Interruption Coverage

PHILADELPHIA — A Pennsylvania federal judge has dismissed an art gallery’s COVID-19 business interruption coverage action against Twin City Fire Insurance Co., ruling that there was no “direct physical loss of or physical damage to” insured property as required by the policy.

In a Jan. 14 order, Judge Chad F. Kenney of the U.S. District Court for the Eastern District of Pennsylvania held that Adrian Moody and Robin Jones d/b/a Moody Jones Gallery failed to allege a “distinct, demonstrable, and physical alteration” of a structure.

The Montgomery County, Pa., gallery was forced to close and later limit operations in compliance …