Gainsberg Law P.C. founder Neal Gainsberg recently sat down with “Let’s Get Legal” radio host Jon Hansen for a discussion about restaurant insurance and claims during the pandemic. The two talked about which losses are covered, which aren’t, and the struggles some smaller restaurants face nearly two years into the pandemic.
All businesses, including restaurants, typically have business interruption insurance policies, which cover income and revenue loss during certain disasters. Attorney Gainsberg tells Jon that, during the COVID-19 shutdown, many restaurants submitted claims to their insurance companies for business losses. As he explains, we have insurance for a reason – someone runs into your car, they should pay the damages. In the same vein, if you pay for insurance for loss of income, your insurance company should step in and pay.
However, most of these restaurant groups found their claims denied under the theory that the pandemic did not cause their business a physical loss, the way a fire or theft might. Further, some business policies even have specific exclusions for viruses, unless they cause a business physical damage. Courts continue to deny these claims, and because insurance companies for Chicago restaurants are located all over the United States, these cases must work their way through a number of courts and multi-district litigation.
Further, Attorney Gainsberg points out that many of these claims are decided on a case-by-case basis – meaning that the language of a particular policy is extremely important. One word in a policy can make or break an insurance claim, which is why it’s so important to have a knowledgeable attorney on your side.
The Chicago insurance attorneys at Gainsberg Law are here to help. We can review your claim and advise you of your rights under your policy, and help your business get back on track. Our team is current on the latest COVID-related legislation and news. Contact us today at 312-600-9585 or complete our contact form.
Neal S. Gainsberg has spent the last 20 years fighting to protect the rights of the injured in Chicago and throughout Illinois. From consumer rights and bankruptcy to catastrophic injuries and wrongful death, Mr. Gainsberg stands up to large corporations, insurance companies, creditors and hospital administrators to ensure that his clients’ futures are safe and secure. Learn More