ZURICH SUED IN US OVER COVID-RELATED CLAIM DENIAL

US hamburger restaurant chain In-N-Out has filed a lawsuit in federal court in California accusing Zurich American of breach of contract for denying its business interruption claim tied to the Covid-19 coronavirus pandemic. In its filing, the California-based chain said it has an all-risk policy from Zurich that covers typical risks like fire but also “novel risks that may arise which were not previously considered by the company, by Zurich or by the public-at-large.” In-N-Out’s complaint asserts the policy, with a $250m limit, “contains no exclusion for viruses or infectious diseases.” The chain said it suffered “significant losses” after it was forced to close its 347 dining rooms under state governments’ pandemic orders and limit service to drive-through customers. Zurich chief financial officer George Quinn said last month that 99% of its policies do not cover virus-related losses, the complaint said.