A federal district court has agreed to dismiss COVID-19 related business interruption disputes filed by a Las Vegas restaurant chain against a Tokyo Marine Group of Cos. -Unity, indicating the insurer's coverage, applies to consumable items, not service.  Egg and I LLC, a seven-store chain that filed its lawsuit on April 24, had sought coverage under its restaurant recovery insurance from the Tokyo Specialty Insurance Co., following last Thursday's decision by the U.S. District Court in Las Vegas in Egg and I LLC et al. mot US Specialty Insurance Co. et al.
"A review of the insurance policy shows that the plaintiff's alleged losses are not covered," the decision states. "The plaintiff claims that the policy definition of 'insured products' includes their family-oriented food service to customers on the spot, and that when the government interrupted personal meals, the plaintiffs suffered a loss covered by the policy."
policy defines insured products as "all consumable products for consumption or any of their ingredients or components", they said.
"These products, despite the plaintiff's arguments, do not include the actual service of food to customers on the spot," the court said, granting the insurer's proposal to dismiss the case.
Lawyers in the case did not respond to a request for comment.
More insurance and risk management news about the coronavirus crisis here.