Philly Wine Bars Not Entitled to COVID-19 Coverage, Pa. Federal Judge Rules

PHILADELPHIA — A federal judge has dismissed a COVID-19 business interruption action filed against American Automobile Insurance Co. by a group of Philadelphia wine bar and tap room owners, ruling that they did not sustain “direct physical loss of or damage” as required by the policy.

In a March 30 order, Judge Wendy Beetlestone of the U.S. District Court for the Eastern District of Pennsylvania rejected Tria WS Café, Tria Alaska Café and Tria Taproom’s argument that government closure orders issued in response to the pandemic prevented them from using their properties for their intended purpose, triggering coverage.

“Given its …