Mo. Taco Restaurant Chain Loses Battle for COVID-19 Coverage

ST. LOUIS — A Missouri federal judge has dismissed a COVID-19 coverage action filed by the owner of a taco restaurant chain against Cincinnati Insurance Co., finding it failed to allege government-ordered shutdowns caused “direct physical loss” of insured property.

In a May 11 order, Judge Ronnie White of the U.S. District Court for the Eastern District of Missouri concluded that neither the orders nor the COVID-19 virus itself caused “physical alteration of property,” therefore coverage was not triggered.

Seoul Taco Holdings LLC was forced to suspend in-person dining in compliance with state and local orders issued in response …