'This Is Why You Pay For Insurance': 2 Local Restaurants Denied Damages During Coronavirus Pandemic Sue Insurance Company
PITTSBURGH (KDKA) -- Two local restaurants have filed a lawsuit against an insurance company after claims for damages amid the coronavirus pandemic were denied.
The restaurants are suing their provider, Erie Insurance, for failing to honor claims for damages to their businesses caused by the pandemic.
The restaurants claim Erie Insurance wrongfully denied their claims.
They and their attorneys say regardless of whether "pandemic" is listed in the policy, the shutdown falls under the category of "catastrophe" and "business interruption," meaning they should be covered.
At Joseph Tambellini Restaurant in Highland Park, the entrance gate is locked, empty tables and chairs are visible.
Sieb's Pub in Ross Township looks frozen in time, still decorated for St. Patrick's Day.
"They were shut down that whole week. Tambellini's is only open for three hours a day for takeout," said Pittsburgh attorney Jack Goodrich.
Both restaurants filed claims for business losses, but Erie Insurance denied them.
"They've called it an 'act of God,' they've called it a virus. They've said we don't cover these types of events, although their policies say different," Goodrich said.
Four attorneys are representing a group of restaurant owners from around the state.
"They've been impacted by no fault of their own, and this is why you pay for insurance," Harrisburg-based attorney Scott Cooper said. "Now the company does not want to live up to its obligation."
"The civil authority clause says if you are shut down by the government, then your insurance coverage pays," Goodrich said.
Erie Insurance issued a statement, saying:
"Business interruption insurance covers financial losses when a business cannot function because of physical damage to a commercial property."
The attorneys say more businesses are expected to file lawsuits.