Restaurants can't recover COVID-19 losses through ‘business interruption’ insurance, 2 top state cou

[somarco]

What about all the businesses that went under?

Here in Atlanta a coffee shop (independent, not chain) that had been in business 40 years closed and never re-opened due to loss of foot traffic for over a year.

Take out coffee is not a big enough income stream.

Also, a family owned Italian restaurant with a 30 year record closed for similar reasons. Takeout didn't cut it.

In SF another family owned seafood restaurant near the wharf closed after almost a 100 year run . . . the lockdowns and anti-business rules imposed by the "guvnor" killed that business as well.

Restaurants that rely on sit-down dining were killed by totalitarian rules.

 

[toolbelt]

What about the spike in suicides

Suicide rates actually declined in 2020 and 2021. That is, unless you read Twitter headlines.

 

[adjusterjack]

I mean isn't Force majeure pretty standard?

Standard where?

Those words don't appear in any insurance policy that I've every read.

In fact, the coverage form (CP 0030) is quite clear and unambiguous.

"We will pay for the actual loss of Business Income you sustain due to the necessary "suspension" of your "operations" during the "period of restoration". The "suspension" must be caused by direct physical loss of or damage to property at premises which are described in the Declarations and for which a Business Income Limit Of Insurance is shown in the Declarations. The loss or damage must be caused by or result from a Covered Cause of Loss"

In the Causes of Loss form (CP 1030) there is an exclusion for:

"Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body."

I'm sympathetic to those businesses that went under but those lawsuits were just desperate attempts to create coverage where there clearly wasn't any.

 

[Travis Price]

Standard where?

Those words don't appear in any insurance policy that I've every read.

In fact, the coverage form (CP 0030) is quite clear and unambiguous.

"We will pay for the actual loss of Business Income you sustain due to the necessary "suspension" of your "operations" during the "period of restoration". The "suspension" must be caused by direct physical loss of or damage to property at premises which are described in the Declarations and for which a Business Income Limit Of Insurance is shown in the Declarations. The loss or damage must be caused by or result from a Covered Cause of Loss"

In the Causes of Loss form (CP 1030) there is an exclusion for:

"Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body."

I'm sympathetic to those businesses that went under but those lawsuits were just desperate attempts to create coverage where there clearly wasn't any.

You need a hug...

We're literally saying the same thing. I was asking, as I am not a P&C agent (and haven't had a P&C license since 2006), if that was a standard clause.

Force Majeure- unforeseeable circumstances that prevent someone from fulfilling a contract.

Essentially- "Act of God", except an "Act of God" generally relates to an environmental act, such as an earthquake. Force Majeure covers all other activities, like a virus outbreak or war, that wouldn't be a reasonable risk to cover.

PS: I'd offer you a free coffee, but I think you're the type of guy that just dumps sugar and creamer into the cup and drinks it. You probably don't even lift your pinky when you drink, like a monster. I can't participate in that barbaric ritual.

 

[Markthebroker]

Suicide rates actually declined in 2020 and 2021. That is, unless you read Twitter headlines.

I don't read twitter headlines. But you're right, I'm surprised, suicide rates did go down. I'll give you that one.

 

[adjusterjack]

PS: I'd offer you a free coffee, but I think you're the type of guy that just dumps sugar and creamer into the cup and drinks it. You probably don't even lift your pinky when you drink, like a monster. I can't participate in that barbaric ritual.

I stir but I don't lift my pinky.

Force Majeure- unforeseeable circumstances that prevent someone from fulfilling a contract.

And you'll find it in many contracts between people and businesses. It absolves a person or business from liability if something happens beyond their control.