Friday, April 1, 2022

Business Interruption Coverage Claim Denied Relative to a Restaurant

In the case of KWB Enter. Inc., v. Nationwide Gen. Ins. Co., 2:20-CV-05195-MSG (E.D. Pa. Jan. 31, 2022 Goldberg, J.), the court granted a Defendant insurance company’s Motion to Dismiss a restaurant’s claims for alleged losses allegedly arising from COVID-19 closure, as well as the alleged public perception of restaurants as dangerous due to COVID-19.

In so ruling, the Court found that the Plaintiff’s “business income,” claim failed because the Plaintiff’s claims were inconsistent with the modifiers “direct,” “physical,” and “of Covered Property” as listed in the insurance policy.

The court additionally found that the Plaintiff’s “civil authority” and “reasonable expectation” arguments failed to support any finding of coverage as well.

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

Source: “Digest of Recent Opinions.” Pennsylvania Law Weekly (Feb. 24, 2022).

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