Coalition of Franchisee Associations

May 8, 2020

Doesn't Look Like Bus.Interruption Insurance is a Dead Issue

Restaurants call on insurers to pay business interruption claims - Restaurant Dive


Anonymous said...

This topic should be a priority for the NFLA. Especially since MCD refuses to abate rents.

Anonymous said...

The problem is that it will take years to settle this issue in the courts, long after the epidemic is history. As everyone knows, "Terrorism" requires a rider to Business Interruption coverage at an additional cost. I doubt pandemics/epidemics will ever be covered as insurance companies do not have the assets to cover such a large claim. Even travel insurance excludes "epidemics". Possibly the government will define this pandemic as a "terrorist" act by China, subject to interruption coverage, but I doubt it for political reasons.

Anonymous said...

Typical MCD mentality, it will take years, or Corp is too big to bother. If your insurance pays for interruption caused by crap coming up your toilet.. it can pay for interruption from crap that came from China. Same thing.

Heres the kicker, they would settle ... you'd get something, rather than nothing. Hell, even car insurances are kicking back 15% of their premiums.

Anonymous said...

Response to post above: Just read you BI insurance contract. Crap from toilet is covered after a waiting period(though I would call a plumber first)epidemics/pandemics excluded. Not the same thing. Some car insurers are refunding premiums because their claims and underwriting costs went down. That is not the case with BI insurers, who did not include pandemic costs in their premiums that you did not pay.

Anonymous said...

What are you talking about? Why did we not pay premiums, insurance companies got premiums based on transactions and sales... which are DOWN!

We have coverage for food safety and brand protection. Interuption is interuption..

Ill eat the 24 hour issue, compared to.losimg 14 weeks.. smh

Anonymous said...

Interruption is interruption except for pandemics/epidemics which are specifically excluded. Read your policy! Example: Terrorism is excluded unless you pay for a coverage rider. Premiums will be adjusted next year for lower sales/transactions this year, plus any risk/loss adjustments by underwriting. It's unfortunate, but insurers could never cover the losses associated with a worldwide pandemic event shut down. That's what I'm talking about.