6th Cir. Dashes Breakfast Chain’s Hopes for COVID-19 Coverage

LOUISVILLE, Ky. — A federal appellate court has upheld dismissal of a COVID-19 coverage action filed by a midwestern breakfast chain, affirming that it failed to allege its losses were caused by the actual or alleged exposure to COVID-19, as required by the policy’s Restaurant Extension Endorsement.

On Sept. 9, a 6th Circuit U.S. Court of Appeals panel majority agreed with a Kentucky federal judge that Wild Eggs Holdings Inc.’s allegations did not trigger coverage because the government closure orders were issued in response to the pandemic, rather than the actual or alleged presence of the virus at its restaurants.