New Orleans Restaurant Owner Not Covered for COVID-19 Losses, Judge Rules

NEW ORLEANS — A Louisiana federal judge has ruled that a restaurant owner cannot recoup COVID-19-related losses from Starr Surplus Lines Insurance Co. because it did not allege “direct physical loss of or damage” to property, as required by the policy.

On Nov. 15, Judge Susie Morgan of the U.S. District Court for the Eastern District of Louisiana followed the 5th Circuit U.S. Court of Appeals’ reasoning that neither the virus nor related government orders cause “tangible alterations of, injuries to, and deprivations of property.”

Khodr Investments owns several restaurants in the New Orleans area, including Arabella, Byblos Restaurant and …