New Case May Test Business Interruption Insurance amidst COVID

Insurance companies and business owners around the country are watching a trial in Louisiana that may help businesses use insurance coverage to augment losses from public health orders that forced many businesses to shut their doors during the COVID-19 pandemic. The lawsuit focuses on a 500-seat restaurant that is suing its insurance broker claiming that its “all risk” policy should cover losses incurred as property damage as a result from the virus touching various surfaces. The suit claims the policy’s business interruption insurance should be triggered. While other states have seen similar lawsuits from businesses, most courts have dismissed those suits, and business owners have been left without recourse. 

Learn more about the pending case on Law360 (subscription may be required). We will continue to update this blog as the case proceeds.

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