Clothing Manufacturer, Retailer Sues Zurich American for COVID-19 Business Losses

INDIANAPOLIS — A high-end clothing manufacturer and retailer has sued Zurich American Insurance Co., seeking coverage for business interruption losses it sustained when it was forced to close or limit the production of its manufacturing and retail divisions due to COVID-19 civil authority orders.

According to a complaint removed to the U.S. District Court for the Southern District of Indiana on May 15, Tom James Co. says its losses, which include business interruption, extra expense, and interruption by civil authority, are insured under its $2 million “all-risks” policy.

“This ‘all-risks’ coverage is broad,” Tom James maintains. “It provides coverage for …