Pa. Car Dealers Lose COVID Insurance Row Due To Exclusion

Law360 (July 20, 2021, 9:07 PM EDT) -- Employers Mutual Casualty Co. is not responsible for covering a Pennsylvania car dealership owner's COVID-19 losses because its policy expressly excludes viruses, a federal judge ruled Tuesday, adding another case to the pile of pandemic suits against insurers that have been dismissed by trial courts.

Noting there is no "legitimate dispute" that COVID-19 is a virus that causes illness, U.S. District Judge Jeffrey L. Schmehl said Vinart Management Co. is not entitled to coverage under its Employers Mutual policy.

"It is clear that coverage for [Vinart's] losses due to COVID-19, a virus, is barred by the virus or bacteria exclusion," the...

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