Even restaurants with comprehensive business interruption policies are struggling to receive payments after closing their doors due to state and municipal COVID-19 mandates.
The Oceana Grill, a popular tourist destination in New Orleans, Louisiana, is currently suing Lloyd’s of London because the insurer refuses to pay the restaurant. Oceana Grill’s business interruption policy covers “all risk” and has no exclusions of coverage due to business loss as a result of a viral pandemic. The restaurant’s attorney argues that damages caused by the restaurant’s shutdowns are a “real physical loss” that should be covered. Louisiana, however, restricted the operations of its courts after the suit was filed, putting proceedings on hold, Josowitz said.