East End Files Brief For Insurance Coverage
Erie Insurance suggests the restaurants have experienced no physical impact, falsely arguing that “direct physical loss” means structural damage, requiring a structural alteration, without which the restaurants are not entitled coverage.
However, our clients argue that COVID-19 is not intangible. It is physical, ubiquitous, and evolving. It requires restaurants to implement physical responses to combat its spread, not unlike efforts used to combat the effects of other forces of nature, like boarding up windows before a storm. COVID-19 and related government shutdown orders triggered these responses and caused restaurants across the country to suffer the direct physical loss of their bars and restaurants, resulting in a significant loss of business income and incurring additional necessary expenses. This is the exact type of business interruption covered in the restaurants’ “all risk” insurance policies.