COVID-19 BI Trial Ends in Verdict for Lloyd’s
Lloyd’s of London underwriters won a state court ruling to avoid covering a New Orleans restaurant’s pandemic-linked financial losses, ending a first-of-its kind trial to determine insurers’ obligation to business policyholders.
At issue is whether shutdown orders meant to mitigate the virus’s spread trigger payouts for lost income and other expenses of businesses that were forced to close or curtail services during the pandemic’s initial wave. Many business interruption cases have resulted in pre-trial rulings, the bulk of which have favored insurers.
Judge Paulette R. Irons of the Civil District Court for the Parish of New Orleans denied Cajun Conti’s petition for declaratory relief without offering a written opinion or explanation.