Pa. Rental Owner Sues Insurer Over Virus Losses

Law360 (June 30, 2020, 5:08 PM EDT) -- A Pennsylvania business rental and restaurant owner is suing Cincinnati Insurance Co., claiming the insurer improperly applied a pollution exclusion to wrongfully deny its business interruption loss claims caused by the COVID-19 pandemic and state-mandated closures.

Fegley Management & Energy LLC told the Philadelphia County Court of Common Pleas on Sunday that Cincinnati refused to cover the more than $50,000 in damages it experienced since the government-ordered shutdowns, even though the policies contain no virus or pandemic exclusions.

Fegley owns two restaurants and rental properties in Bethlehem and Allentown, Pennsylvania. The company closed its restaurants, and its business tenants ceased operations...

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