Carrier's Denial of Claim for Business Interruption Coverage Upheld

In the case Isaac’s At Spring Ridge, LLP v. MMG Ins. Co., No. CI-20-03613 (C.P. Lanc. Co. March 2, 2021 Sponaugle, J.), the court issued an Order granting the carrier’s Motion for Judgment on the Pleadings in a coverage action arising out of the Plaintiff’s claim of business income losses under an all-risk commercial property policy involving a restaurant that was forced to modify, but not close, its operation due to the Commonwealth’s COVID-19 Orders.

In so ruling, the court relied, in part, upon a virus exclusion contained in the policy.

The court also found that the civil authority coverage requirements under the policy were not met.

The court also noted that the Plaintiff did not suffer any direct physical loss or damage to its premises in order to meet the requirements of another policy provider for coverage.

Anyone wishing to review this detailed Order without Opinion issued by the Court may click this LINK.


I send thanks to Attorney Peter J. Speaker of the Harrisburg, PA office of the law firm of Thomas, Thomas & Hafer, LLP for bringing this case to my attention.