The insured's COVID-19 claim was dismissed under one policy, but survived a motion to dismiss under a second Restaurant Recovery Policy. Menchies Group, inc. v. Mass Bay Ins Co., 2023 U.S. Dist. LEXIS 153933 (S.D. N.Y. Aug. 31, 2023).

Menchies owned and operated frozen yogurt shops throughout the United States. Beginning in March 2020, Menchies alleged that the COVID-19 pandemic impacted its business. First, COVID-19 caused direct physical loss of or damage to its properties by altering their physical conditions so that they were no longer safe to use. Second various governmental orders caused a total or partial prohibition of access to Menchies' properties and a total or partial interruption of its business. Third, Menchies contended that its products were exposed to and contaminated by COVID-19 through employees and guests carrying the virus, making it necessary to destroy significant amounts of products.