International: Insurance Company Sued for $250 Million Pandemic Claim

US fast food restaurant chain “In-N-Out” are starting a breach of contract action against Zurich American Insurance Company for a coronavirus related business interruption claim. On the 17th March 2020 the business closed down all of its outlets following the instruction to do so by California State governor Gavin Newsom, they claim the insurance company should cover them for millions of dollars in lost revenue in accordance to the policy they had in place.

According to Nations Restaurant News, the restaurant claims Zurich American Insurance has denied the claim based on the “all risk” policy that includes “unknown and novel risks that may arise”. Sources do not state the value of the claim, but do report that the claim is capped at $250 million with the company operating over 250 locations around the US.