STORY FROM: COVID-19 Litigation Report

Insurer Says Pa. Restaurant Did Not Sustain ‘Direct Physical Loss or Damage’

HARRISBURG, Pa. — Pennsylvania National Mutual Casualty Insurance Co. has moved to dismiss a class action complaint filed by the owners of a South Carolina eatery, contending that the insured property has not sustained “direct physical loss of or damage” as required by the policy.

In a June 19 motion filed in the U.S. District Court for the Middle District of Pennsylvania, the insurer further contends that the virus exclusion in the policy at issue bars coverage.

In a May 12 complaint, Richard Kahn and AARK Enterprise LLC d/b/a Mauldin’s contends that civil authority orders issued in response to the ...

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