August 04, 2020

Many of Chicago’s and New York’s most iconic and well-known restaurants—as well as national chains and local family-run eateries—have filed suit against their insurance carriers for refusing to cover loss and damage resulting from executive orders shutting down and restricting restaurants. Represented by Jenner & Block, these clients are seeking coverage under “all-risk” policies for the dramatic losses they have suffered.

“Our clients suffered direct physical loss and damage—and hundreds of millions of dollars of losses—as a result of the executive shutdown orders. Despite promising to cover “all risks,” the insurers have wrongly refused to cover those losses. We look forward to vindicating our clients’ rights in court,” said Jenner & Block Partner Gabriel K. Gillett.

According to the complaints, the plaintiffs are entitled to payment “for multi-million-dollar business income losses suffered as a direct result of unprecedented state and municipal executive shutdown orders and restrictive reopening orders.” Policyholders claim that the executive orders caused direct physical loss or damage to their properties by “physically impairing, detrimentally altering, and rendering them nonfunctional as restaurants and cultural institutions.”

“These restaurants paid their premiums and believed in good faith that when their businesses were interrupted for situations covered by their insurance policies, they would be made whole. But they weren’t. And that’s not right. We believe they are entitled to the benefit of their bargain,” said Jenner & Block Partner Jeremy M. Creelan.

In addition to Mr. Gillett and Mr. Creelan, the firm team includes Partners Precious S. Jacobs, David M. Kroeger, Jan A. LarsonJohn H. Mathias, Jr., Caroline L. MeneauMegan B. Poetzel, Michael W. Ross, and Brian S. Scarbrough, Special Counsel Seth H. Agata, and Associates Joshua M. Levin and Jenna E. Ross.