Wednesday, October 27, 2021

COVID-19 Business Interruption Coverage Claim Dismissed

In the case of Penn Asian Senior Serv. v. Selective Ins. Co.,  No. 20-4919 (E.D. Pa. Sept. 30, 2021 Pratter, J.), the court granted an insurance company’s Motion to Dismiss a Plaintiff’s business interruption coverage action under its property insurance policy relative to the COVID-19 pandemic closures.

According to the Opinion, the Plaintiff filed a declaratory judgment action seeking coverage under its property insurance policy for operating expenses incurred while its adult daycare center was closed due to COVID-19 orders.

The court found that the Plaintiff did not show any evidence of a physical loss of the premises.

The court additionally stated that the civil authority provision did not apply under the circumstances presented.

The virus exclusion in the policy was also found to preclude coverage.

As such, the court granted the carrier’s Motion to Dismiss.

Anyone wishing to review a copy of this decision may click this LINK.

Source: “Digest of Recent Opinions.” Pennsylvania Law Weekly (Oct. 21, 2021).

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