New Orleans Hotel Operator Loses Battle for COVID-19 Coverage in Federal Court

NEW ORLEANS — A Louisiana federal judge has dismissed a COVID-19 coverage action filed by the operator of several New Orleans hotels, ruling it did not allege “direct physical loss of or damage” to property, as required by the primary policy.

In a May 12 order, Judge Jane T. Milazzo of the U.S. District Court for the Eastern District of Louisiana ruled that neither government closure orders nor the virus itself caused physical alteration to Hotel Management of New Orleans LLC’s property.

In March 2020, Louisiana Governor John Bel Edwards and New Orleans Mayor Latoya Cantrell ordered non-essential businesses to …