Memphis Restaurant Owners Sue Lloyd’s Underwriters for COVID-19 Coverage

MEMPHIS, Tenn. — The owners of several Memphis restaurants and bars have sued Certain Underwriters at Lloyd’s London, contending that civil authority shutdown orders issued in response to the COVID-19 pandemic caused the eatery to sustain “direct physical loss” that is insured under its policy.

In an Aug. 20 class action complaint filed in the U.S. District Court for the Western District of Tennessee, King’s Palace, Inc., and KPC, Inc. d/b/a King’s Palace Café, Inc., Tap Room and Absinthe Room assert that coverage is available under the policy’s provisions for business income, extra expense and civil authority.

Also named as …