Tavern Wins Court Fight for Covid Loss Insurance Coverage

A downtown Pittsburgh bar won a state court ruling that compels its insurance company to cover pandemic-related losses, scoring a rare business win over their insurers on Covid coverage.

Grant Street Tavern, owned by MacMiles LLC, had an all-risk policy from Erie Insurance Exchange covering ‘direct physical ‘loss’ of or damage to Covered Property,’ according to a ruling issued Tuesday by Judge Christine Ward of the Court of Common Pleas of Allegheny County.

Such a loss would include the tavern’s inability to use its premises due to Covid-19 safety concerns, Ward said.

Businesses nationwide have sued their insurers to seek coverage for financial losses stemming from Covid-19 related closures.

The tavern’s victory marks a rare court win for businesses, as judges have predominantly sided with insurers that claim policies exclude such coverage terms.