Calif. Sports Bar Sues Farmers Insurance for COVID-19 Business Interruption Losses

LOS ANGELES — The owner of a California sports bar and grill has filed a class action against its insurers in federal court, seeking a declaratory judgment that they are obligated to pay for business interruption losses arising from COVID-19 and related government shutdown orders.

In a May 4 complaint filed in the U.S. District Court for the Central District of California, Kingray Inc. d/b/a La Quinta Beer Hunter says Farmers Group Inc., Farmers Insurance Company Inc. and Truck Insurance Exchange have breached their policies’ terms by denying coverage for such losses.

“Despite the provision of business interruption coverage …