More Nashville restaurants sue insurance carriers

In the past week, four more Nashville restaurants have entered into legal battles with their insurance companies over failing to pay pandemic-related business losses. 

Acme Feed & Seed, The Southern Steak & Oyster, Bajo Sexto Taco and The 404 kitchen (the latter two owned by the same management company, LGW) have each filed separate lawsuits against the same insurer, Cincinnati Insurance Company.

The lawsuits filed in federal court come nearly a month after restaurants, Wooldworth on Fifth and Pemrose, separately filed lawsuits against Cincinnati Insurance Company. 

The restaurants are all represented by the Frazer law firm. 

The bans on dine-in eating by state and local authorities have resulted in a collective revenue loss of $225 billion for restaurants and bars across the country, the National Restaurant Association estimates.

Each of the lawsuits makes similar allegations: the restaurants filed for claims with Cincinnati Insurance Company that were met quickly with “blanket denials.”

“The speed with which Defendants denied these claims indicate that Defendants already decided and put into place procedures for the blanket denial of claims,” the lawsuit said. 

In each of the restaurant’s insurance policies, pandemics are not specifically excluded as a covered loss, the lawsuits said.

In copies of correspondence filed with the lawsuit, the insurer claimed that COVID-19 did not represent property damage. 

The lawsuits ask that a judge award unpaid claims, as well as damages, but do not specify amounts.