Chez Panisse has sued a Nationwide Mutual Insurance Co. unit for refusing to pay business outages in connection with the pandemic.
The well-known Berkeley, California restaurant filed Tuesday in U.S. District Court in San Francisco against Nationwide Unit AMCO Insurance Co., according to the complaint, Panel Et Vie., Inc. dba Chez Panisse Restaurant v. AMCO Insurance Co.
The complaint states Nationwide Unit AMCO denied the restaurant's claim in a "speckling" denial letter stating that coverage was not justified because there was no direct physical loss or damage to property.
The lawsuit, which accuses the insurer of breach of contract, seeks an explanation that its income losses are covered.
In response to a question, Nationwide issued the same statement as it has previously issued, stating "Business outage coverage due to a virus outbreak has been excluded from the standard policy in ssued to entrepreneurs throughout the insurance industry for quite a long time. The risk of such an event is so great, including that in standard coverage it would make such coverage inaccessible or even inaccessible. "
Earlier this month, a Michigan court ruled that the owner of two central Michigan restaurants cannot recover revenue lost under the coronavirus lock during a business interruption policy because the property did not have a direct physical loss.
More insurance and risk management news about the coronavirus crisis here .