STORY FROM: COVID-19 Litigation Report

Kansas City Sub Chain Says COVID-19, Closure Orders Cause ‘Physical Loss or Damage’

KANSAS CITY — A Kansas City sandwich shop chain has sued State Auto Property & Casualty Company Inc. for coverage of business interruption losses it sustained when it was forced to close its dining rooms in compliance with COVID-19 government orders.

In a July 22 class action complaint filed in the U.S. District Court for the Western District of Missouri, Planet Subs Holdings Inc. says the orders and the virus itself triggered coverage under its policy because they caused “physical loss or damage” to insured properties.

“Defendant has, on a wide-scale and uniform basis, refused to pay its insureds under ...

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