Puerto Rican Seafood Wholesaler’s Lost Inventory Not Covered, Federal Judge Rules
May 27, 2021
SAN JUAN, Puerto Rico — A federal judge has upheld a reinsurer’s determination that a seafood wholesaler’s COVID-19-related inventory loss is not covered under a policy’s civil authority provision because government orders restricting the operations of its customers were not directed toward the insured product itself.
On May 24, Judge Francisco A. Besosa of the U.S. District Court for the District of Puerto Rico further agreed with the reinsurer that the losses fall within exclusions in the policy issued by its cedent, Guardian Insurance Company Inc.
In early 2020, Northwestern Selecta imported more than $1 million worth of seafood product …