Phila. Restaurant Owners Say COVID-19 Losses Caused Insurable Damage

PHILADELPHIA — A group of Philadelphia restaurant owners have sued their insurers in federal court, demanding coverage for business interruption losses they sustained during the COVID-19 pandemic when lawmakers ordered all eateries to close their dining rooms to customers.

In an Aug. 25 class action complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Tria WS Café, Tria Alaska Café and Tria Taproom contend that the orders triggered coverage under the Business Income and Extra Expense provisions of their all-risk policies because they caused “direct physical loss of or damage” to their insured properties.

Defendants are …