Lloyds Underwriters Denied Summary Judgment in 1st COVID-19 Coverage Action Filed in U.S.

NEW ORLEANS — A Louisiana judge has denied Certain Underwriters at Lloyd’s, London summary judgment in the first COVID-19 coverage action filed in the United States, ruling that questions of fact exist as to whether the more liberal reading of the policy term “direct physical loss” should be applied.

In a Nov. 4 order, Judge Paulette R. Irons of the Civil District Court for the Parish of Orleans further found there are issues of fact as to whether the suspension of the Oceana Grill’s operations was caused by a physical loss or damage to its property.

The owners of the …