Lloyd’s Underwriters Beat Miami Salon’s Covid-19 Coverage Suit

Lloyd’s of London underwriters and two insurance carriers dodged a Miami Beach salon’s lawsuit over pandemic-linked business losses, after a federal judge found a lack of tangible property damage that would trigger insurance payouts.

Atma Beauty Inc. sued the underwriters, and carriers HDI Global Specialty SE and Axis Specialty Europe SE, in April after being denied coverage for the financial hit the salon took when ordered to close its doors as Covid-19 spread. The salon sought reimbursement for lost income and extra expenses, arguing that its loss of property use amounted to an actual, covered loss.

But Judge Darrin Gayles ...