LA’s Musso & Frank Grill Loses Covid Insurance Coverage Appeal

Hollywood restaurant Musso & Frank Grill Co. Inc. failed to convince a California appellate court Thursday that its business interruption insurance must cover financial losses it suffered during the Covid-19 pandemic.

The restaurant filed a claim with Mitsui Sumitomo Insurance USA, Inc. after being forced to close under public health orders in March 2020. Because Musso & Frank never offered food for pickup or delivery, it was forced to shut down completely, it said.

MSI denied the claim on the grounds that the policy only covered direct physical loss of or damage to the property, and expressly excluded coverage for ...