Fla. Breakfast Chain Not Covered for COVID-19 Losses, 4th Cir. Affirms



DOCUMENTS
  • Order


RICHMOND, Va. — A Florida breakfast chain is not entitled to coverage for COVID-19-related losses from Colony Insurance Co. because its insured properties did not sustain “direct physical loss of or damage,” a federal appellate court has affirmed.

On July 25, the 4th Circuit U.S. Court of Appeals agreed with a Virginia federal judge that Skillets LLC d/b/a Skillets Restaurant failed to allege that the virus itself or the government closure orders issued during the pandemic did not “change, alter or damage” its property.

Coverage is therefore unavailable under the policy’s Business Income, Civil Authority, Extended Business Income and Extra …






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