STORY FROM: COVID-19 Litigation Report

Calif. Home Décor Retailer Sues Chubb for COVID-19 Losses

PHILADELPHIA — A California luxury interior design and furniture store has filed a proposed class action against its insurer, demanding coverage for losses it sustained when it was forced to temporarily close due to COVID-19 and related stay-at-home orders.

In a June 15 complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Susan Spath Hegedus Inc. d/b/a Kern & Co. says ACE Fire Underwriters Insurance Co. and its parent company, Chubb Ltd., are liable for the losses because they arise from covered “direct physical loss of or damage” to property.

“Plaintiff’s covered property suffered ‘direct physical ...

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