April 28, 2020

Chefs say that could make recovery impossible. Some are suing

There are thousands of D.C. restaurants closed – or pared down to a sliver –and tens of thousands of employees laid off by the pandemic, according to a new federal lawsuit.

Chefs and restaurant owners say their insurance companies are refusing to cover the pandemic losses.

One D.C. restaurant is leading the fight to force the insurance companies to help.

GCDC Grilled Cheese Bar is a popular comfort food spot near the White House. It's shuttered now by the pandemic, with an apology to its customers in the window, and a promise to reopen when it's safe.

Its owner, Bruce Klores, has set up a GoFundMe for his employees. Now he's suing his insurance company for refusing to cover his losses, and his lawyers are inviting other restaurant owners to join the lawsuit.

"If these policies are not paid out, the people who are going to suffer are not just restaurant owners, but their employees," said his lawyer, Geoffrey Graber.

The lawsuit says the restaurant has paid more than $100,000 in premiums for the insurance.

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The Cheese Bar had "business interruption insurance" from The Hartford Insurance Company. That's insurance coverage designed to replace business income lost in a disaster.

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For many chefs, that's just not good enough. The Grilled Cheese Bar's lawyers are inviting other restaurant owners to sign on to their class action lawsuit against the insurance companies.

The complete article can be accessed here.