Texas Restaurant Chain Sues Scottsdale, Agent, for COVID-19 Business Losses

HOUSTON — A Mexican restaurant chain has sued Scottsdale Insurance Co. and insurance agent Terry Slater, demanding coverage for business interruption losses it sustained due to government stay-at-home orders issued in response to the COVID-19 pandemic.

In a complaint removed to the U.S. District Court for the Southern District of Texas, Ybarra Investments Inc. d/b/a Gringo’s Mexican Kitchen says it bought additional insurance to cover the loss of business income and extra expenses caused by the actions of a civil authority that prohibits access to its insured premises.

The COVID-19 civil authority orders caused a direct physical loss or …