Car Dealership Files Proposed Class Action Against Insurer for COVID-19 Coverage

PITTSBURGH — A car dealership has filed a proposed class action against Erie Insurance Group on behalf of policyholders who suffered business losses after government orders issued in response to the COVID-19 pandemic forced them to temporarily close.

In a June 9 complaint filed in the U.S. District Court for the Western District of Pennsylvania, Close Enterprises Inc. d/b/a Close Auto Sales contends that Erie has accepted premiums with no intention of providing coverage for business income losses resulting from the shutdown orders or any related property damage.

The COVID-19 pandemic and related government orders have caused policyholders to …