Insurer Moves to Dismiss Las Vegas Breakfast Chain’s COVID-19 Class Action

LAS VEGAS — An insurer has moved to dismiss a proposed class action in which Las Vegas breakfast chain Egg Works seeks coverage for COVID-19-related business losses, arguing that the losses do not arise from a covered “Insured Event.”

In a May 26 motion filed in the U.S. District Court for the District of Nevada, U.S. Specialty Insurance Co., Professional Indemnity Agency LLC d/b/a Tokio Marine and HCC-Specialty Group contend that the plaintiffs do not allege any “Accidental Contamination,” as required by the policy.

The “Accidental Contamination” provision requires accidental or unintentional contamination, impairment or mislabeling of an insured …