Miami Oyster Bar Loses Battle for COVID-19 Coverage in Fla. Federal Court

MIAMI — A federal judge has dismissed a Miami oyster bar’s COVID-19 coverage action against Tokio Marine Specialty Insurance Co., ruling that government closure orders or potential virus contamination do not cause “direct physical loss of or damage to” covered property, as required by the policy.

In a June 29 order, Judge James Lawrence King of the U.S. District Court for the Southern District of Florida rejected Mignonette Miami LLC’s argument that “loss of use,” without physical damage, triggered coverage under the policy’s provisions for Business Income, Extra Expense and Civil Authority.

“Plaintiff does not allege any actual, concrete damage …