Lloyd’s Owes Louisiana Restaurant for Viral Damage, Court Says

A New Orleans restaurant prevailed against Underwriters at Lloyd’s for insurance coverage of pandemic-related losses, after a Louisiana appellate court found that the coronavirus physically contaminated the eatery’s property.

Lloyd’s insurance policy is ambiguous, and the Oceana Grill’s argument that Covid-19 caused property damage by contaminating its facilities is plausible, said a 3-2 majority panel of the Louisiana Fourth Circuit Court of Appeal Wednesday, reversing a lower court ruling.

The ruling in favor of the policyholder comes as courts around the country have been mostly siding with insurers against businesses’ claims for losses related to Covid-19, concluding that the coronavirus ...