Helicopter Company Loses Bid for COVID-19 Coverage in La. Federal Court

LAFAYETTE, La. — A Louisiana federal judge has dismissed a helicopter services company’s COVID-19 coverage action against Zurich American Insurance Co., agreeing with a magistrate judge that neither the virus nor government closure orders caused “direct physical loss of and damage to covered property.”

On February 23, Judge Robert R. Summerhays adopted a report and recommendation opining that the presence of the virus in a building does not physically alter a property, and mere loss of use does not constitute a physical loss.

PHI offers helicopter flight operations for numerous business sectors, including the offshore oil and gas, air medical, …