Thank you for sharing!

Your article was successfully shared with the contacts you provided.
insurance policy To some extent, Jones also apparently considered other federal opinions, including some outside of the Third Circuit, on the issue of claimed COVID-19-caused loss coverage under policies covering “physical” loss or damage.

A Pennsylvania federal court has dismissed a restaurant’s legal claims against its insurer that alleged it was owed loss coverage after public officials implemented stay-at-home orders in response to the coronavirus threat. The court’s ruling pointed to an insurance policy’s “unambiguous” language centered on its insured restaurant’s “physical” losses.

At the center of the case, Maudlin’s, a now-shuttered restaurant in South Carolina, sued its commercial insurer, Pennsylvania National Mutual Casualty Insurance Co., in May 2020 after the company denied its claim for losses tied to customers staying away from the restaurant as COVID-19 spread and officials urged them to remain home.

Maudlin’s and former owner Richard Kahn had hoped their business losses would be covered by an “all-risk” policy they’d bought from National Mutual Casualty that covered all risks of loss unless expressly excluded, according to U.S. District Judge John Jones III of the Middle District of Pennsylvania, and they had brought claims for breach of contract, breach of the duty of good faith and fair dealing and declaratory relief.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.