A Court Will Not Rewrite a Policy to Provide Coverage not Purchased

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8كيلو بايت

The Insured Failed to Prove that Covid Infected Employee Contaminated Food Served

Read the full article at https://www.linkedin.com/pulse/court-rewrite-policy-provide-coverage-insured-barry-zalma-esq-cfe and at https://zalma.com/blog plus more than 3850 posts.

RESTAURANTS SHUT DOWN FOR COVID-19 MUST PROVE CONTAMINATION OF FOOD TO RECOVER ON POLICY

New Orleans Equity, L.L.C. (“New Orleans Equity”) the owner of two restaurants in New Orleans, LA, moved for summary judgment on the issue of coverage for contamination of food. Defendant U.S. Specialty Insurance Company (“USSIC”) responded and also moved for summary judgment. In New Orleans Equity, L.L.C. v. U.S. Specialty Insurance Co., Civil Action No. 20-1935, United States District Court, E.D. Louisiana (August 3, 2021)


ZALMA OPINION

Although there was no virus or bacteria exclusion in the USSIC policy the insured still had to prove that the food it served had been contaminated because it was served by a waiter who had contracted Covid-19. They failed to do so and their expert was unable to say anything more than there was a possibility that customers had been infected and that some food may have been touched by droplits containing the Covid virus. It’s real loss was due to the shut down and its claim, although creative, was not capable of proof.

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