STORY FROM: COVID-19 Litigation Report
Insurer Seeks Dismissal of Philly BYOB’s COVID-19 Coverage Action, Citing Virus Exclusion
July 22, 2020
PHILADELPHIA — Admiral Indemnity Co. has moved to dismiss a Philadelphia restaurant’s lawsuit demanding coverage for COVID-19 losses, arguing that the policy’s virus exclusion applies because the economic damages were caused by the pandemic rather than by government orders prohibiting dine-in services.
In a July 13 motion filed in the U.S. District Court for the Eastern District of Pennsylvania, the insurer further argues that Civil Authority coverage is not available because the government stay-at-home orders issued in response to the pandemic did not “prohibit access” to the insured premises. Additionally, plaintiff has not alleged “direct physical loss of or damage ...
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