Hotel Management Co. Sues Insurers for COVID-19 Business Interruption Losses

BIRMINGHAM, Ala. — A hotel and restaurant management company has sued its insurers, demanding coverage for business interruption losses it sustained when it was forced to halt or limit operations due to the COVID-19 pandemic and related government closure orders.

In a complaint originally filed in the Jefferson County (Ala.) Circuit Court, Ascent Hospitality Management Co. accuses Employers Insurance Company of Wausau and Liberty Mutual Insurance Co. of breaching its policy by denying its claim without conducting an adequate investigation.

Wausau removed the action to the U.S. District Court for the Northern District of Alabama on June 2 — the …