Ala. Federal Judge Refuses to Dismiss Restaurants’ COVID-19 Coverage Action

BIRMINGHAM, Ala. — An Alabama federal judge has refused to dismiss a COVID-19 coverage action filed against Cincinnati Insurance Co. by a group of eateries, finding they adequately alleged actual physical loss of their insured property during the pandemic.

In a May 6 order, Judge Madeline H. Haikala of the U.S. District Court for the Northern District of Alabama explained that Serendipitous, LLC/Melt, Melt Food Truck, LLC d/b/a Melt, and Fancy’s on Fifth, LLC d/b/a Fancy’s on Fifth sufficiently pled they were physically deprived of their property when seven employees tested positive for the virus and government orders restricted access …