Wednesday, October 27, 2021

Eastern Federal District Court Dismisses COVID-19 Business Interruption Claim

In the case of Fuel Univ. City, LLC v. Allied Ins. Co. of Am., No. 2:20-cv-04478-CMR, (E.D. Pa. Sept. 9, 2021 Rufe, J.), the Eastern District Federal Court ruled that a business was not entitled to business interruption coverage for losses incurred during shutdown orders issued by the government in response to the COVID-19 pandemic.

According to the Opinion, the Plaintiff, Fuel University City, LLC, owned and operated a delicatessen that was covered by an “all-risk” commercial insurance policy.   

The court noted that, under the insurance policy at issue, coverage was only available for losses incurred for a direct physical loss or damage to the covered property, and the pandemic had caused no such specific damages.   

Based upon this ruling, the court granted the Defendant’s Motion to Dismiss.   

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