Houston restaurants sue over virus claims.
Gringo’s among those claiming business interruption
A group of Houston restaurants and a Beaumont orthodontist are among the latest Texas companies to sue insurance companies for not fulfilling business interruption insurance claims related to the pandemic.
YBarra Investments, which owns the restaurants Gringo’s Mexican Kitchen, Jimmy Changas, the Lunch Box, Bullrito’s and Burger Libre, sued its insurer, Scottsdale Insurance Co., for not covering its loss of income when the business was forced by county order to temporarily close its dining areas. While the insurance policy excluded virus and bacteria-related damage, the restaurant argued that virus and bacteria are usually understood in the restaurant business to refer to potential causes of food poisoning and other illnesses, not a pandemic.
“Just as with many other dis
asters, the insurance industry will not step up and pay valid claims until they are forced to do so by the legal systems,” Tim Goss, YBarra’s lawyer, said in an emailed statement.
Orthodontist Ronald K. Risinger, who operates several practices in Jefferson County, sued Sentinel Insurance Co., saying his insurance specifically covered bacteria and virus-related damages.
Neither enterprise specified in the filings the coverage payout it was seeking.
Many businesses across the nation that turned to policies they believed were designed to cover the loss of revenue caused by forced closures have been rebuffed by insurers that could be crippled by covering such losses.
The problem has become so pervasive that legislatures in Louisiana, New York, New Jersey, Ohio and Massachusetts are considering laws that would force insurers to cover COVID-19-related business interruption claims, even if policies specify that virusrelated interruptions are exempt.
In the Houston area, Star Cinema Grill, Hair Goals Club and Light & Tight Medispa have filed similar suits.