STORY FROM: COVID-19 Litigation Report

San Francisco Restaurants Say First Mercury Breached Policies by Denying COVID-19 Benefits

SAN FRANCISCO — The owners of two San Francisco restaurants have sued First Mercury Insurance Co, seeking to recoup business interruption losses and expenses they incurred when civil authority orders issued in response to the COVID-19 pandemic forced them to temporarily close.

In a June 18 complaint filed in the U.S. District Court for the Northern District of California, Grubstake Holdings, LLC d/b/a Grubstake and 1337 Mission LLC d/b/a Oddjob say the orders caused “a direct physical loss of property” and loss of business income, triggering coverage under their policies.

First Mercury, however, denied plaintiffs’ claims without conducting an investigation, ...

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