Ala. Restaurant Sues Cincinnati Insurance for COVID-19 Business Interruption Losses

MONTGOMERY, Ala. — An Alabama family-owned restaurant and bar has sued The Cincinnati Insurance Co. in federal court, demanding coverage for losses it sustained when the state governor closed all non-essential businesses in an effort to stem the spread of COVID-19.

In a July 27 complaint filed in the U.S. District Court for the Middle District of Alabama, Pear Tree Group LLC d/b/a The Hound says the governor’s orders caused its premises and the surrounding area to suffer physical harm, triggering coverage.

“The orders prohibited access to Plaintiff’s Insured Property, and the area immediately surrounding Covered Property, in response to …