Trial Begins in Louisiana COVID-19 Business Interruption Coverage Action

NEW ORLEANS — Trial has begun in the first COVID-19 coverage action filed in the United States, in which Certain Underwriters at Lloyd’s, London will argue that the owners of a Louisiana restaurant did not sustain “direct physical loss” as required by the policy.

Opening arguments were held on Dec. 14 in the Civil District Court for the Parish of Orleans, with Judge Paulette R. Irons presiding. In November, Judge Irons found the case presents questions of fact as to whether the more liberal reading of the policy term “direct physical loss” should be applied.

The owners of the 500-seat …