The owner of Guajillo Mexican has brought a lawsuit against Twin City Fire Insurance—a member of the Hartford Insurance Group, after receiving notice that the company was not going to cover its business interruption claims related to COVID-19 [Source: Insurance Business America]. Rolando Juarez, the owner of the establishment, said that his policy “explicitly covers such loss when caused by a virus, including the salaries and other expenses owed.” The owner also claims that the restaurant’s policy states, “We will pay for loss or damage by fungi, wet rot, dry rot, bacteria, and virus.”
Twin City Accused of Breaching Its Obligation to Provide Coverage
Aside from citing the wording in Juarez’s policy that proves he is entitled to coverage for the COVID-19 virus, the lawsuit goes on to accuse Twin City of breaching its obligation and responsibility to provide coverage available through the policy to Guajillo. The document also highlights an area of Guajillo’s policy that defines a “period of restoration which begins with the date of direct physical loss or physical damage caused by or resulting from a covered cause of loss at the scheduled premises.”
The attorney representing Guajillo said that the restaurant has been in Arlington for about 20 years and is family-owned. He shared that the owners paid for their insurance coverage, including business interruption insurance, “and expected to get coverage when their business was interrupted.” While the restaurant has still been able to offer delivery and takeout services, the insurance lawyer went on to say that “Rolando Juarez can be found in his kitchen every day [as] he is trying to keep all of his staff employed. This pandemic has devastated his business. The insurance coverage that he paid for could help this neighborhood family-owned business survive.”
Did your insurer recently deny your business interruption claim?
The COVID-19 pandemic has wreaked havoc on businesses of all sizes, and some may not be able to pull themselves out of the hole they have been pushed into. If your business is suffering and you need help obtaining the funds your insurer owes you but is refusing to pay, you need to contact a Virginia insurance claims denial attorney. USAttorneys.com can help you find a lawyer in your area who can establish if you have the grounds to sue your insurer.
Given that you do, the Virginia insurance claims denial lawyers USAttorneys.com can connect you with will work to get your claim paid. In the event your carrier does not wish to resolve the issue amicably, then further action can be taken to get you the coverage you paid for.