Proving a microscopic virus was ever even on
a business’s premises, never mind damaged it,
could pose a challenge to plaintiff attorneys.
The Pennsylvania Supreme Court last week may
have inadvertently helped business owners
make their case when it upheld a state order
closing nonessential businesses during the
pandemic, likening the coronavirus to hurricanes
in its ruling.
“COVID-19 pandemic is, by all definitions, a
natural disaster and a catastrophe of massive
proportions,” the majority opinion said.
Insurance companies say most policies that
cover unanticipated interruptions to a business’s
operations specifically exclude pandemics. Such
exclusions became more common after a SARS
virus outbreak in the early 2000s devastated
businesses in parts of Asia.
A message seeking comment from the insurer
the Billy Goat is suing, Society Insurance,
wasn’t returned.
A note to policyholders on the website of
Travelers Indemnity, the insurer Geragos is suing,
reads like a blanket denial of virus shutdown
claims because they’re “not a result of direct
physical loss or damage.” It also cites virus
exclusions in its policies.
But such exclusions don’t mean businesses don’t
have valid claims, the business lawyers contend.
They point to separate policy provisions
requiring that insurers pay losses when civil
authorities intervene during emergencies and
order businesses to close.
The Billy Goat Tavern’s legal team says their case
may be that much stronger because their insurer