STORY FROM: COVID-19 Litigation Report

Putative Class: Continental Casualty Endorsements, Exclusions Inapplicable to COVID-19 Claims

LAS CRUCES, NM — Owners of a New Mexico restaurant and espresso bar filed a class action April 21 on behalf of similar establishments that have been refused coverage for losses sustained as a result of COVID-19 related closures.

Café Plaza De Mesilla Inc. alleges in the action filed in U.S. District Court that insurer Continental Casualty denied coverage for the COVID-19 losses, despite terms of a Special Property Coverage Form contained in their all-risk policy and in those purchased by similar businesses nationwide.

Continental Casualty’s Special Property Coverage Form also provides “Civil Authority” coverage, which promises to pay for ...

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