Tribulations Restaurants Face as Business Interruption Claims are Denied

The impact of the coronavirus pandemic has – and continues to be – felt by every industry across the board. Restaurants in particular have been dealt a harsh blow, as many have been forced to shutter their dining areas and bars, and solely rely on take-out and delivery orders. This has without a doubt drastically limited profits for restaurant owners. Now, as restrictions begin to loosen, and restaurants are slowly beginning to reopen, many are still operating at limited capacity. The National Restaurant Association estimated that the industry would lose $225 billion between the months of March and June.

While it’s likely that large restaurant chains will have the capital to withstand both the shutdown and capacity restrictions, many independent, small restaurants – which make up almost two-thirds of the industry – will struggle to bounce back. According to restaurant analysts and operators, about 75 percent of independent restaurants will not be able to reopen.

For many…