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Business, Interrupted: Insurance claims often denied for pandemic-related business closures

By Michelle Tuccitto Sullo
After Lenny & Joe’s Fish Tale restaurant in New Haven sued its insurance provider for refusing to pay for business losses related to the coronavirus pandemic shutdown, a federal judge dismissed the case within just six months.
U.S. District Court Judge Michael Shea in December granted AmGUARD Insurance Co.’s motion to dismiss the case, concluding the restaurant’s insurance policy’s virus exclusion meant any losses due to the pandemic weren’t covered.
Like Lenny & Joe’s, an array of businesses, from restaurants to manufacturers and medical providers, have experienced pandemic-related losses in the past year, and several have turned to the courts when their insurance carriers denied coverage.

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