Outback Steakhouse Owners Sue Affiliated FM for Coverage of COVID-19 Losses

SAN FRANCISCO — The owners of approximately 100 Outback Steakhouse restaurants have sued Affiliated FM Insurance Co. (AFM) in California federal court, seeking coverage for business interruption losses arising from government-ordered closures in response to the COVID-19 pandemic.

In a Sept. 29 complaint filed in the U.S. District Court for the Northern District of California, Cerca Trova Restaurant Group Inc. and its subsidiaries contend that “communicable disease” such as COVID-19 is a covered cause of loss under the policy, and that the virus has caused, and continues to cause, physical loss or damage to property.

Plaintiffs Cerca and its subsidiaries …