Goddard School Owner Sues Insurer for Coverage of COVID-19 Business Income Loss

PHILADELPHIA — The owner of a New Jersey Goddard School preschool has sued Philadelphia Indemnity Insurance Co., seeking coverage for business interruption losses arising from government closure orders issued in response to the COVID-19 pandemic.

In a complaint removed to the U.S. District Court for the Eastern District of Pennsylvania, BSD-360 LLC d/b/a The Goddard School contends that the COVID-19 pandemic and related closure orders have caused its insured property to incur physical loss and damage, triggering coverage.

On March 18, the parent of a child enrolled at plaintiff’s preschool tested positive for COVID-19. On the same day, plaintiff …