Fla. Café Owner Cannot Recoup COVID-19 Losses from Insurer, 11th Cir. Affirms

ATLANTA — A federal appeals court has upheld dismissal of a restaurant owner’s COVID-19 coverage action against a Chubb Ltd. unit, affirming that government orders limiting business operations during the pandemic did not cause “physical loss of or damage to” insured property.

In a May 13 opinion, the 11th Circuit U.S. Court of Appeals panel found Café International Holding Company LLC did not allege “some tangible alteration” of its property.

In response to government orders issued in March 2020, Café International closed the dining room of its Fort Lauderdale Italian restaurant and offered take-out services only. The restaurant sustained economic …