Mt. Hawley Fires First Shot Against Policyholders in COVID-19 Coverage Brawl

NEW ORLEANS — Mt. Hawley Insurance Co. has asked a Louisiana federal court to rule that it is not obligated to cover a real estate investor's COVID-19-related losses, arguing that government orders issued in response to the pandemic did not require suspension or cessation of the insured businesses or bar access to their properties.

In a declaratory judgment action filed in the U.S. District Court for the Eastern District of Louisiana on Nov. 19, the insurer contends that a hotel and shopping center owned by defendant Sika Investments LLC were permitted to operate under restrictions set by Louisiana Governor John …