Lieff Cabraser Civil Justice Blog
Robert J. Nelson and Naomi Pomeroy Discuss Business Interruption Insurance Claim Denial and Lawsuits on OpenTable’s ‘In it Together’ Webinar Series

LA Times: How Restaurants Are Struggling to Pay Rent During Coronavirus Pandemic

The impact of the Coronavirus on the restaurant industry has been massive. As reported by the Los Angeles Times, restaurant owners have been forced to cut costs and cut staff. Even after receiving government-issued Paycheck Protection Program money, many still cannot afford to pay their rent or payroll.

According to the National Restaurant Association, the pandemic has cost the restaurant industry $120 billion in sales between March and May 2020 alone. That number is expected to grow to at least $240 billion by the end of 2020.

Lieff Cabraser is working with Attorney Alexandra L. Foote on a wide range of business insurance denial cases. Foote told the Times that in order to seek compensation for these business interruption losses, restaurant and bar owners should revisit their insurance policies. Foote and Lieff Cabraser have teamed up to help lead the charge of #RESTAURANTJUSTICE, a series of lawsuits filed against insurers who are denying restaurants’ business interruption insurance claims relating to the Coronavirus pandemic.

Lieff Cabraser and Foote are working with California restaurants that include Citrin, A.O.C., Tavern, Tilda and The Den on Sunset to file claims for business interruption insurance coverage for losses due to the government-mandated shutdowns. These shutdowns, Foote argues, “are a covered peril under policies that should have paid business expenses during the closures, including rent and payroll.”

“For a tenant, it’s critical that they tender their claim and that they contact their insurance company to submit for coverage for business interruption,” she said. “Make sure you let your landlord know you did that. It shows the landlord you’re not just not-paying the rent, you’re doing everything you can.”

Read the full article on the LA Times website.

Contact a Business Interruption Insurance Denial Attorney

While some insurers are showing extraordinary compassion and flexibility in responding to virus related claims, other insurers are refusing to pay business interruption claims despite restaurants having faithfully paid costly premiums for decades. We think this is wrong, an atrocity that threatens to decimate America’s most beloved restaurants.

If your restaurant’s business interruption insurance claims have been denied after the government-ordered shutdown of all or part of your business, then contact a Business Interruption Insurance Denial attorney at Lieff Cabraser today using the form on this page to start the conversation and learn how you can get justice and recover for your losses.