Friday, July 9, 2021

Another Covid-19 Related Claim for Business Interruption Coverage Dismissed


In the case of Star Buick v. Sentry Ins., No. 5:20-CV-03023 (E.D. Pa. May 26, 2021 Leeson, J.), the court entered a declaratory judgment for the carrier after finding that the insurance policy providing coverage for direct physical loss, which phrase was not defined in the policy, did not provide coverage for loss of business income to an auto dealership due to the suspension of business operations during the COVID-19 pandemic.

The court additionally found that the civil authority provision in all-risks policy did not provide coverage to the auto dealership given that the business was not denied access to the property as a result of damage sustained to another property.

Anyone wishing to review a copy of this decision may click this LINK.  The companion Order can be viewed HERE.


Source: “Court Summaries” by Timothy L. Clawges, Pennsylvania Bar News (June 28, 2021).


Source of image:  Photo by Kaique Rocha from Pexels.com

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