La. Hot Dog Chain Says COVID-19 Caused Insurable Property Damage

NEW ORLEANS — A Louisiana hot dog chain has sued Certain Underwriters at Lloyd’s London after the insurers denied its claim for COVID-19-related business interruption losses, arguing that virus contamination is a “direct physical loss.”

In a Sept. 4 complaint filed in the U.S. District Court for the Eastern District of Louisiana, Dat Dog contends that the contaminated surfaces of its four locations constitute a direct physical loss, triggering coverage under the policy’s Building and Personal Property and Civil Authority provisions.

“Lloyd’s repudiated and breached and/or anticipatorily breached the Policy by denying coverage, communicating to Plaintiff that COVID-19 contamination was …