Pa. Restaurant Sues Insurer, Agent, Demanding Coverage for COVID-19 Business Losses

HARRISBURG, Pa. — A Scranton, Pa., restaurant has sued its insurer and an insurance agent, accusing them of failing to honor their obligations to provide coverage for business interruption losses it has sustained due to COVID-19 governmental closure orders.

In a complaint originally filed in the Lackawanna County Court of Common Pleas on April 24, State Street Restaurant Group Inc. contends that the orders caused its restaurant to suffer “direct, physical loss to property” and that the policy’s pollution exclusion does not apply because pollution did not cause the loss.

Named as defendants are Cincinnati Insurance Companies and AssuredPartners of …