STORY FROM: COVID-19 Litigation Report

Pa. Daycare Files Class Action Against Insurer, Seeking Coverage for COVID-19 Business Losses

PHILADELPHIA — The owner of a Pennsylvania daycare has filed a class action against Philadelphia Indemnity Insurance Co., demanding coverage for business interruption losses it sustained when it was forced to close in compliance with COVID-19 civil authority orders.

In a May 18 complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Crossroads Investments LLC, which owns the Central Bucks Children’s Academy, says the orders have caused it to sustain “direct physical loss of or damage to covered property” that is insured under its policy.

“Approximately 50 percent of the parents of the children that attend ...

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Carson Lynch
Freed Kanner London & Millen

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