Boscov’s Department Store Chain Loses Bid for COVID-19 Coverage

PHILADELPHIA — A Pennsylvania federal judge has awarded American Guarantee and Liability Insurance Co. judgment on the pleadings in a COVID-19 coverage action filed by the Boscov’s department store chain, ruling that it did not sustain “direct physical loss of or damage” to covered property.

In a June 30 order, Judge John M. Gallagher of the U.S. District Court for the Eastern District of Pennsylvania further held that the chain’s losses fall under the policy’s Contamination Exclusion.

Boscov’s Department Store Inc. is a family-owned business that owns 50 department stores on the east coast. In compliance with state and local …