Midwestern Breakfast Chain Loses Battle for COVID-19 Coverage

LOUISVILLE, Ky. — A Kentucky federal judge has dismissed a COVID-19 coverage action filed by a midwestern breakfast chain, finding 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.

In a Sept. 16 order, Judge Rebecca G. Jennings of the U.S. District Court for the Western District of Kentucky found 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.

Wild …