Grilled Cheese Eateries Lose Battle for COVID-19 Coverage in Ala. Federal Court

BIRMINGHAM, Ala. — An Alabama federal judge has dismissed a COVID-19 coverage action filed against Cincinnati Insurance Co. by a group of eateries, finding they did not sustain physical loss of their insured property during the pandemic.

On Aug. 3, Judge Madeline H. Haikala of the U.S. District Court for the Northern District of Alabama explained that Serendipitous, LLC/Melt, Melt Food Truck, LLC d/b/a Melt, and Fancy’s on Fifth, LLC d/b/a Fancy’s on Fifth were not physically deprived of their property even though seven employees tested positive for the virus and government orders restricted access to their restaurants.

The judge …