Pa. Deli Chain Loses Battle for COVID-19 Business Interruption Coverage

  • Order

PHILADELPHIA — A Pennsylvania deli chain is not entitled to coverage for its COVID-19 losses from State Auto Property and Casualty Insurance Co. because it did not sustain a “direct physical loss of property” as required by the policy, a federal judge has ruled.

In a May 14 order, Judge John Gallagher of the U.S. District Court for the Eastern District of Pennsylvania concluded that neither COVID-19 nor government closure orders issued in response to the pandemic cause a “distinct, demonstrable, physical alteration” of property.

Isaac’s Deli Inc. owns and operates a chain of sandwich restaurants throughout central Pennsylvania. Beginning …


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