STORY FROM: COVID-19 Litigation Report

Waiter’s COVID-19 Diagnosis Triggered Coverage, New Orleans Restaurant Owner Contends

NEW ORLEANS — The owner of two well-known New Orleans restaurants has sued its insurer in federal court, alleging that coverage for COVID-19-related losses is available under its policy’s “accidental contamination” provision.

In a July 8 complaint filed in the U.S. District Court for the Eastern District of Louisiana, New Orleans Equity, L.L.C. d/b/a Galatoire’s Restaurant and Galatoire’s 33 Bar & Steak contend that a waiter’s COVID-19 diagnosis triggered coverage under its Restaurant Recovery Insurance policy issued by U.S. Specialty Insurance Co.

According to the lawsuit, the restaurants were accidentally contaminated when the longtime employee tested positive for the COVID-19 ...

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