Virus Exclusion Defeats Pa. Auto Dealerships’ Bid for COVID-19 Coverage

  • Order

PHILADELPHIA — A virus or bacteria exclusion in a policy issued by Employers Mutual Casualty Co. bars coverage for a group of Pennsylvania auto dealerships’ COVID-19-related losses, a federal judge has ruled in dismissing the action with prejudice.

In a July 19 order, Judge Jeffrey Schmehl of the U.S. District Court for the Eastern District of Pennsylvania rejected the dealership’s argument that the exclusion does not apply because its losses were caused by government shutdown orders rather than the virus itself.

“The Virus or Bacteria Exclusion states that is applies to coverage for interruption by civil authority and any loss, …


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