Cincinnati Insurance Prevails in 4 Pa. COVID-19 Coverage Actions

PHILADELPHIA — A Pennsylvania federal judge has dismissed four COVID-19 business interruption actions filed against Cincinnati Insurance Co., ruling that government closure orders issued in response to the pandemic did not cause the businesses to sustain “direct physical loss,” as required by the policies.

On March 29, Judge Michael Baylson of the U.S. District Court for the Eastern District of Pennsylvania explained that when there is no alteration to a physical structure, coverage under the policies is not triggered.

Plaintiffs Chester County Sports Arena, Milkboy Center City LLC, Cornerstone Warrington Inc. and Stone Soup Inc. are all insured under …