Restaurant Seeks $100K, Consequential Damages for Insurer’s Denial of Superstorm Sandy Sewer Backup Claim

NEW YORK — A Cuban restaurant and bar in New York has sued National Specialty Insurance Co. for denying a claim for property damage and business interruption it says was caused by a sewer backup during Superstorm Sandy.

The Cuban Crocodile filed the complaint in Nassau County Supreme Court, accusing National Specialty of bad faith for its refusal to reevaluate and settle the claim, which the insurer says was the result of flooding and is not covered under the restaurant’s policy.

National Specialty, which insured The Cuban Crocodile under a commercial package policy, removed the cases to U.S. District Court …