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Restaurant Entitled to Business Interruption Coverage – A Pasich Attorney Discusses the Impact of Appeals Court Ruling in Business Insurance

Jun. 21, 2022

A Louisiana state appeals court overturned a lower court ruling and held that a New Orleans restaurant is entitled to COVID-19-related business interruption coverage because of ambiguous policy language. In interviews with Business Insurance, a Pasich attorney discussed what this decision means for future pandemic-related rulings.

The appeals court “applied a bedrock principle of insurance policy interpretation, holding that the phrase ‘direct physical loss of or damage to’ was ambiguous and should thus be construed against the drafter and in favor of coverage,” they said. “This ruling will no doubt influence the many other appellate courts with pandemic insurance issues before them.”

Read “Restaurant Entitled to Business Interruption Cover: State Appeals Court” here.

Read “Policyholders Score Some Wins in COVID Rulings” here.


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