Vending

Judge denies Philadelphia vending company’s insurance claim for COVID losses

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May 17, 2021

A federal judge ruled that RDS Vending in Philadelphia is not entitled to coverage for pandemic related losses under its property insurance policy, according to a law.360.com report.

U.S. District Judge Cynthia M. Rufe said Thursday that company's "all-risk policy" with United Insurance Co. did not cover losses from COVID-19 or government stay-at-home orders. Even if the company did show physical damage to its warehouse, it would have been barred from coverage by a virus exclusion, the judge said.

Operations continued during the pandemic since the business it was deemed an essential business, court records showed.

Rufe acknowledged a building could be rendered useless without noticeable damage, but in this case, there was no loss since workers could use the warehouse while taking steps to social distance from each other.

RDS Vending claimed "social anxiety" and the perception that indoor establishments were not safe led to damage covered under the policy.