Orthopedic Practice Loses Bid for COVID-19 Coverage in La. Federal Court



DOCUMENTS
  • Order


NEW ORLEANS — A Louisiana federal judge has dismissed an orthopedic practice’s COVID-19 coverage action against State Farm Fire and Casualty Co., ruling that neither the virus nor government orders issued in response cause “direct physical loss” to property.

In a May 4 order, Judge Wendy B. Vitter further ruled that coverage for the plaintiff’s losses is barred by the policy’s virus exclusion, which clearly applies to losses caused by “fungi, virus or bacteria.”

Southern Orthopaedic Specialists filed a claim with State Farm after it experienced business interruption losses during the COVID-19 pandemic. The practice suspended all non-emergency procedures in …






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