Insurer Says Idaho Restaurant Did Not Suffer ‘Direct Physical Loss or Damage’

DES MOINES, Idaho — Regent Insurance Co. has moved to dismiss an Idaho restaurant’s COVID-19 business interruption coverage action, arguing that it did not sustain “direct physical loss or damage to” covered property as required by the policy.

In an Oct. 7 motion filed in the U.S. District Court for the Southern District of Idaho, the insurer contends that Lisette Enterprises Inc. failed to allege direct physical loss or damage to its insured premises; rather, it alleges that its restaurant was closed due to the government-imposed order restricting restaurant business to “take-out only” business.

“The vast majority of courts …