US-based property casualty insurance firm Travelers Casualty Insurance Company of America has reportedly won a business interruption lawsuit filed in Mississippi, the US.

US District Judge Keith Starrett dismissed the proposed class action filed against the insurer by hamburger restaurant Ed’s Burger Joint, after finding it didn’t sustain ‘direct physical loss or damage’ as required by the Traveler’s policy.

The judge conceded that the policy does not afford coverage as the restaurant was not ‘permanently dispossessed of any insured property.’

As per the lawsuit, the shutdown imposed as a result of the Covid-19 pandemic resulted in losses by restricting dine-in services at the outlet.

The court reportedly said: “Reading the policy as a whole, the court finds that plaintiff’s complaint fails to state a claim because it does not allege that any insured property was damaged or that plaintiff was permanently dispossessed of any insured property.

“Consequently, plaintiff’s contention that ‘loss of property’ reasonably includes loss of usability is not sustainable.”

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Real Hospitality which runs business as Ed’s Burger Joint approached Mississippi federal court in May this year.

Previously, Travelers tasted victory in another lawsuit involving children’s clothing retailer Mudpie on similar grounds.

Meanwhile, in July this year, The Travelers Companies reached an exclusive agreement with Procore to enable contractors to manage the total cost of risk through enhanced operations and job-site safety.