S.C. Eatery Hits Penn National with Class Action, Seeking to Recoup COVID-19 Business Losses

HARRISBURG, Pa. — The owner of a South Carolina “mom and pop” eatery filed a class action against Pennsylvania National Mutual Casualty Insurance Co. after the insurer denied coverage for business losses the restaurant sustained when it was forced to close down in the midst of the COVID-19 pandemic.

In a May 12 complaint filed in the U.S. District Court for the Middle District of Pennsylvania, Richard Kahn and AARK Enterprise LLC d/b/a Mauldin’s contends that civil authority orders issued in response to the virus caused it to sustain “direct physical loss or damage” which is covered under its policy.