New Orleans Restaurant Loses COVID-19 Coverage Battle in 1st U.S. Case

NEW ORLEANS — A New Orleans restaurant has lost its battle for COVID-19 business interruption coverage in the first case of its kind in the United States, with a Louisiana judge ruling that there was no “direct physical loss,” as required by the policy.

Following a trial that began on Dec. 14, Judge Paulette Irons of the Civil District Court for the Parish of Orleans signed a judgment in favor of Certain Underwriters at Lloyd’s London on Feb. 10, rejecting the policyholders’ more liberal reading of the policy requirements.

No written opinion accompanied the order. Judge Irons said she …