The COVID-19-related business interruption coverage case of Taps & Bourbon on Terrace, LLC v. Underwriters at Lloyds London, et al., pending in the Philadelphia County Court of Common Pleas, may represent a growing trend all policyholders whose businesses have suffered from the impact of COVID-19 would welcome—the acknowledgement that, as the court stated, “the law and facts are rapidly evolving in the area of COVID-19 related business losses.” Litigation
This reality was the engine of the court’s act of denying Lloyd’s preliminary objection to Taps & Bourbon’s complaint seeking coverage for business interruption losses.
Save for the comment noted above, the court’s order provides little insight into its reasoning for denying Lloyd’s motion.
However, Taps & Bourbon had argued in response to Lloyd’s preliminary objection that: A virus is made up of atoms just like water, smoke, asbestos, or, even, a tree that may have fallen during the last storm. Just like smoke, water, asbestos, or that tree, as soon as it lands on a surface, it alters that surface. While any of these items can be cleaned from that surface, its effect is nevertheless physical in nature.