Las Vegas Breakfast Chain Loses Bid for COVID-19 Business Interruption Coverage

LAS VEGAS — A Nevada federal judge has dismissed a Las Vegas breakfast chain’s COVID-19 business interruption coverage action, ruling that the policy does not cover losses arising from the government-ordered suspension of in-person dining.

In a Feb. 25 order, Judge Kent Dawson of the U.S. District Court for the District of Nevada found the policy language makes it clear that “Insured Products” applies to ingestible items, rather than “service.”

Plaintiffs Egg and I LLC and Egg Works LLC own a group of Las Vegas family-oriented dining restaurants and employ more than 400 people in the Las Vegas valley. In …