BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.
To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.
To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.
A U.S. unit of Tokio Marine Group of Cos. filed a motion to dismiss a Las Vegas restaurant chain’s coronavirus-related business interruption suit on Tuesday.
In the case Egg and I LLC et al v. U.S. Specialty Insurance Co. et al, which was filed in federal court in Las Vegas on April 24, the insurer argues that it would only cover lost income if it is a result of an insured event, as defined by the policy.
The restaurant chain, which has seven locations in the Las Vegas area, had argued in the proposed class action that the Restaurant Recovery policy it bought from Houston-based U.S. Specialty covers business income it lost due to government-ordered restrictions on nonessential businesses to limit the spread of the coronavirus.
The policy covers “accidental contamination” of an “insured product” and insured products include retail restaurant offerings at any of the policyholder’s locations, the suit said.
In its motion to dismiss filed Tuesday, U.S. Specialty said courts have previously held that contamination only occurs if a product comes into contact with a contaminant.
Egg and I does not allege that its losses arose from food contamination, the motion states.
“Instead, and to the contrary, Plaintiffs allege that their claimed losses resulted from the suspension of their business operations due to the Directives,” the motion states.
The case is among numerous suits filed in state and federal courts by small businesses seeking business interruption coverage for income lost during the pandemic. Insurers argue that most policies require physical damage to trigger coverage and that the presence of the coronavirus does not constitute physical damage.
More insurance and risk management news on the coronavirus crisis here.