Restaurant Asks Court to Declare Coronavirus Shutdown Covered By Insurance Policy

March 17, 2020

  • March 17, 2020 at 11:57 am
    J Neal Lankford says:
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    The relevant question regarding Business Interruption/Business Income is not whether or not a Direct Physical Loss occured. The question that should be asked is whether or not the direct physical loss resulted from a Covered Peril.

    I believe Mr Badger summed up the situation as well as anybody,
    “The normal process is for the policyholder to file a claim, let the insurance company evaluate the coverages under the policy, and then determined whether coverage exists,” said Steven J. Badger, a partner with Zelle LLP.”

  • March 17, 2020 at 6:23 pm
    Exadjuster says:
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    Tend to disagree with above comment. Many, many years ago, while working for a major carrier, I had a claim involving a restaurant cut off from road traffic due to flood waters [not a covered peril] over the only roads to the facility. There was no damage to the restaurant and the claim was denied.

  • March 21, 2020 at 4:48 pm
    Ayme Harrison says:
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    I’m having a hard time understanding how business interruption insurance should not apply when our local government has forced our restaurants to close. Call me stupid but isn’t it called “Business Interruption” for a reason. My bad for not purchasing Pandemic Interruption Insurance…oh wait that’s right it didn’t exist.

    • March 23, 2020 at 6:47 pm
      Jason Upton says:
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      Every policy has exclusions. It has never been the case that everything is covered.

    • March 24, 2020 at 1:40 pm
      Angela Furino says:
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      You need to read beyond the coverage heading to determine coverage for any loss. Every coverage is subject to exclusions and limitations.



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