Mass. Daycare Loses Bid for COVID-19 Business Interruption Coverage

  • Order

BOSTON — A Massachusetts daycare is not entitled to coverage for COVID-19 business interruption losses from Philadelphia Indemnity Insurance Co. because it did not experience “direct physical loss” of insured property, a federal judge has ruled.

In a Sept. 24 order, Judge Timothy S. Hillman of the U.S. District Court for the District of Massachusetts explained the policy clearly does not cover financial or other intangible losses; rather, there must be a “physical” loss of or damage to a tangible object, such as the structure of a building.

Pakachoag Acres Day Care Center Inc. was forced to temporarily close its …


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