The owner of a Las Vegas restaurant chain has filed a federal class action lawsuit against his insurance companies over their refusal to pay business interruption claims he requested for coronavirus-related losses.
Brad Burdsall owns a chain of popular breakfast and lunch restaurants comprised of nine Egg Works and Egg & I locations in the Las Vegas Valley. Like scores of other businesses throughout the country, his company has been hit hard by the coronavirus pandemic and government-ordered shutdowns.
But when he sought business interruption compensation to cover the losses, his insurers did nothing. Mr. Burdsall says because of the insurance companies’ refusal to cover “standard business interruption expenses,” he was forced to file the lawsuit.
According to FOX 5 Las Vegas, the lawsuit states that Mr. Burdsall purchased restaurant recovery insurance policies from U.S. Specialty Insurance and Tokio Marine and Acuity in September 2019 to protect “the restaurant chain against a loss of business income due to a suspension of each restaurant’s operations.”
Mr. Burdsall says that Nevada Governor Stephen F. Sisolak’s order to close all nonessential businesses limited his restaurants to serving takeout and curbside only. But those options fail “to meet the high standards” of “food quality, service and dining experience” he has strived to provide his customers since 1998.
The restrictions have led to a “serious loss of business sales and unexpected expenses,” Mr. Burdsall’s complaint alleges, adding that “in spite of clear policy language these insurance companies refused to pay any losses and expenses.”
Mr. Burdsall says he built the restaurant chain from the ground up and invested his “life’s blood into its success.” Naturally, protecting such an investment is critical not just to Mr. Burdsall but to the more than 400 people he employs in Las Vegas and Henderson.
“It’s the same all through Nevada,” he said, according to FOX 5. Insurance companies are paid substantial premiums by their insurers to be there for businesses and save jobs of hardworking wonderful people. It’s offensive these insurance companies are not meeting their obligations.”
Denied business interruption insurance litigation
Attorneys with Beasley Allen Law Firm are actively pursuing these cases already with our clients who received a denial communication from their insurance companies. Dee Miles, Head of our Consumer Fraud Section, Rachel Boyd and Paul Evans are spearheading this litigation for our firm. They would like to talk to you about any potential claims.