Pa. Hotel Loses Battle for COVID-19 Coverage in Federal Court

  • Order

HARRISBURG, Pa. — A Pennsylvania hotel is not entitled to coverage from American Select Insurance Co. for losses it sustained during the COVID-19 pandemic because there was no “direct physical loss of or damage to property,” a federal judge has ruled.

In a June 7 order, Judge Yvette Kane of the U.S. District Court for the Middle District of Pennsylvania explained that 44 Hummelstown Associates LLC failed to allege that the function of its hotel was “nearly eliminated or destroyed” or “made useless or uninhabitable.”

Plaintiff operates a Comfort Suites hotel in Hummelstown, Pa. In March 2020, Pennsylvania Governor Tom …


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