Insurer’s Lawsuit Says Mexican Restaurant’s COVID-19 Losses Not Covered

ALBUQUERQUE, N.M. — An insurer has asked a New Mexico federal court to rule that it is not liable to reimburse a restaurant for its COVID-19-related losses because there was no “direct physical loss of or direct physical damage” to property as required by the policy.

In a Sept. 25 complaint filed in the U.S. District Court for the District of New Mexico, American Hallmark Insurance Company of Texas further argues that Morales-Kratzer Inc. d/b/a El Callejon Taqueria & Grill’s alleged food spoilage losses are not covered because they did not arise from contamination by refrigerant, loss of electrical power, …