Restaurants Tied to Group Policy Sue Axis Surplus for Coverage of Superstorm Sandy Damage

NEW YORK — Two New York City restaurants that were insured under a group restaurant policy issued by Axis Surplus Insurance Co. have sued the insurer for refusing to provide full coverage for losses caused by Superstorm Sandy.

The Tribeca Grill and B&D Again LLC filed the complaint Sept. 10 in U.S. District Court for the Southern District of New York, accusing Axis of bad faith in determining that the restaurants’ losses were not proximately related to Sandy’s wind and wind-driven rain effect, but at the same time acknowledging the applicability of a Named Windstorm Deductible contained in the policy. …