As the coronavirus pandemic continues to lead to the closing of
many bars, restaurants, movie theaters and other venues, businesses
have predictably turned to their insurance policies to cover
coronavirus-related losses. In the last month alone, businesses
have filed several insurance coverage lawsuits concerning these
issues, which may have important ramifications on whether
policyholders can rely on their insurance for virus-related losses
moving forward.
In mid-March, New Orleans restaurant Oceana Grill filed a
lawsuit in Louisiana state court seeking coverage under its
property and business interruption policy due to mandated closures
resulting from COVID-19. See Cajun Conti LLC, et al. v. Certain
Underwriters at Lloyd's London et al., case number
2020-02558, in the Civil District Court for the Parish of Orleans,
Louisiana. Like many such policies, Oceana's requires
"direct physical loss" to property, and insurers often
take the position that viruses such as the
