Insurer Disclaims Coverage for Business Accused of Abusing CARES Act Loan Program

AUSTIN, Texas — Berkley National Insurance Co. seeks a ruling that it owes no coverage obligations to a company that was accused of abusing the Coronavirus Aid, Relief, and Economic Security Act Paycheck Protection Program by accepting loan proceeds that were meant for small businesses.

In a Sept. 4 complaint filed in the U.S. District Court for the Western District of Texas, the insurer contends that coverage has not been triggered because the underlying action filed against Phunware Inc. does not arise from “bodily injury” or “property damage” caused by an “occurrence,” or “personal and advertising injury,” as defined by …