Erie Insurance Prevails in COVID-19 Coverage Federal MDL

PITTSBURGH — A Pennsylvania federal judge has granted Erie Insurance Co.’s motion to dismiss plaintiffs’ claims in the COVID-19 business interruption coverage multidistrict litigation, ruling that neither government shutdown orders nor the virus itself causes “direct physical loss of or damage to” property, as required by the policies.

On Oct. 14, Chief Judge Mark R. Hornak of the U.S. District Court for the Western District of Pennsylvania explained that the plaintiffs did not sustain a “distinct, demonstrable, and physical alteration” to property.

Plaintiffs are businesses throughout the country that were insured by Erie and sustained economic losses during the COVID-19 …