Restaurant’s COVID-Related Business Interruption Claim Passes In Court

A multi-concept restaurant group based in Ohio has seen its day in court — and won.

In yet another business interruption claim filed as a result of the COVID-19 pandemic and its subsequent shutdowns, the Henderson Road Restaurant Systems has been deemed to have a ‘reasonable claim’ despite policy language stating otherwise.

As the coronavirus set in last year, many restaurants, bars, salons, boutiques and more faced mandatory shutdowns to help combat the spread. But during such shutdowns, several institutions, especially small businesses, faced large revenue loss.

Many filed business interruption claims as a result. However, many soon learned that a typical business interruption claim would not cover the revenue lost during shutdown, because no physical loss to the business had occurred.

Insurers denied claims left and right. If a claim found its way to court, the law typically ruled on the side of the insurer. Henderson Road fought back hard, however.