Philly Area Restaurants Not Entitled to COVID-19 Coverage, Pa. Federal Judge Rules

  • Order

PHILADELPHIA — A federal judge has dismissed a COVID-19 insurance action filed by the owners of two Philadelphia area restaurants against Hartford Underwriters Insurance Co., ruling that the mere threat of the virus, without more, does not cause “direct physical loss of or direct physical damage,” as required by the policy.

On April 28, Judge Mitchell Goldberg of the U.S. District Court for the Eastern District of Pennsylvania concluded that government closure orders limiting plaintiffs’ businesses did not cause “a distinct, demonstrable, physical alteration” of property.

“Plaintiffs have not plausibly alleged either physical loss or physical damage within the meaning …


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