STORY FROM: COVID-19 Litigation Report

Phila. Daycare Sues Insurers for COVID-19-Related Business Income Losses

BOSTON — A Philadelphia daycare owner has sued Liberty Mutual Insurance Co. and Ohio Security Insurance Co., seeking coverage for losses it suffered when state lawmakers imposed stay-at-home orders in response to the COVID-19 pandemic, forcing it to temporarily close its facilities.

In a June 19 complaint filed in the U.S. District Court for the District of Massachusetts, Kutest Kids says it has sustained “direct physical loss of or damage to covered property” which is insured under its policy.

Defendants, however, denied Kutest Kids’ claim for loss of business income “without justification,” according to the complaint.

“Plaintiff suffered losses of ...

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