Restaurants have been faced with serious consequences because of the requirement to stay closed during the stay-at-home or shelter-in-place orders. Many of them have suffered major losses with a number of franchises unable to reopen for financial reasons. It isn’t just the local eateries that have sustained damages from the loss of revenue. Four chefs have organized a group to try to do something about the situation.
Influence Behind Household Names
Many people who enjoy cooking shows and follow restaurants recognize the name of Wolfgang Puck. He is one of the chefs who has organized the Business Interruption Group with Georges Vongerichten, Daniel Boulud and Thomas Keller. The goal of this group is to draw attention to the plight of the restaurants and advocate for their losses to be covered by business interruption insurance.
The group cites two reasons why the restaurants were forced to close. The first was to follow the executive orders of the governors of their state, which called for nonessential businesses to remain closed. The second is due to the physical damage sustained by the restaurants when the COVID-19 virus was prevalent on surfaces, which made the places inoperable.
All these chefs are well-respected within the industry. Wolfgang Puck is a household name with a longstanding reputation and his own restaurants. Vongerichten is the owner of Jean-Georges at the Trump International Hotel and Tower. Keller and Boulud also have their own restaurants that have been hit by the coronavirus.
Other restaurant owners and managers are waiting to see what happens with the formation of the Business Interruption Group. They are hoping that any recommendations or actions made by these chefs will have an influence on other eateries and draw attention from the media.
Lawsuits for Restaurants Seeking Damages
Even if the media takes notice, the main challenges will be handled through lawsuits. Several restaurants have already filed lawsuits against their insurance providers for failing to pay claims that they have paid into. For instance, Thomas Keller’s restaurants in Napa Valley have filed against Hartford Fire Insurance Co.
Another restaurant in New Orleans filed a lawsuit against Lloyd’s of London for losses it incurred from the coronavirus. Other restaurant owners hope a judgment for these eateries will mean more support for their losses. Neither one of these claims had a policy that excluded the virus, which provides a solid base for the suits. A policy for the French Laundry in Napa Valley included viruses, but the claim was still denied.
Many times, the wording in insurance policies is vague enough to be left to interpretation. In that case, it’s often left up to the judge to determine the intention behind the wording and what is fair for both parties.
Even if they are denied, the lawsuits could be on appeal for years, especially if the case hinges on how long the virus can survive on surfaces. It may become a major point for one side or the other as new information becomes available with continued research into the coronavirus.