Lawsuit Argues Nautilus Insurance Co. Should Cover Restaurant’s COVID-19-Related Business Losses

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A Pittsburgh restaurant has filed a proposed class action against Nautilus Insurance Company over the insurer’s allegedly wrongful refusal to cover COVID-19-related business loss claims.

In March 2020, Pennsylvania Governor Tom Wolf issued a series of executive orders in response to the COVID-19 pandemic that restricted the operation of non-life sustaining businesses and required citizens to stay home, the suit says. According to the case, the COVID-19 outbreak and subsequent government orders forced the plaintiff—who held a Nautilus property insurance policy that included business income, extra expense, contamination, and civil authority coverages—to lose partial use of its premises as the restaurant could no longer offer seated, dine-in services as of March 19, 2020.

The plaintiff claims the closure of its restaurant for dine-in services has caused a “near-total cessation” of its business, forcing it to furlough employees and thereby incur covered losses, damages and expenses.

The lawsuit argues the COVID-19 pandemic has “directly and adversely” affected the business operations of the plaintiff and other Pennsylvania businesses by causing damage and the risk of further harm to their properties. The plaintiff argues that such losses are covered under its Nautilus property insurance policy yet the company has “wrongfully denied” the restaurant and proposed class members’ claims to recover damages.

The lawsuit, which was recently removed from state to federal court in Pennsylvania, seeks a declaration that Nautilus’s policies provide coverage for losses stemming from COVID-19 and an order preventing the insurer from denying coverage.

ClassAction.org’s coverage of COVID-19 litigation can be found here and over on our Newswire.

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