May 7, 2020

DTW 1991 Underwriting Limited has filed a motion to dismiss a case brought by Prime Time Sports Grill, a restaurant in Tampa that is seeking insurance coverage for its COVID-19-related losses.  The insurer argues that Prime Time failed to allege a “direct physical loss of or damage to property” at its premises, and has therefore failed to plead a claim that is covered by the policy.  Prime Time only alleges economic losses (i.e., business income loss) caused by COVID-19, which the insurer claims are potentially covered only if Prime Time can demonstrate “direct physical loss of or damage to property.”  The insurer also takes issue with Prime Time’s allegation that it was forced to close due to orders from Florida’s Governor.  On the contrary, says the insurer, one order encouraged restaurants to remain open and provide delivery, carry-out or curbside service – which Prime Time did.  Prime Time’s response to the motion is due May 18.