In-N-Out Burger Chain Sues Zurich American Insurance for COVID-19 Losses

LOS ANGELES — The In-N-Out burger chain has sued Zurich American Insurance Co. in an attempt to recoup losses it sustained when it was forced to close dining rooms in its 350 restaurants due to the COVID-19 pandemic and related stay-at-home orders.

In a May 29 complaint filed in the U.S. District Court for the Central District of California, In-N-Out says its policy “explicitly recognizes that contamination of property constitutes ‘direct physical loss of or damage’ to property” and that COVID-19 caused “direct physical loss of or damage to” insured property.

“A large percentage of In-N-Out’s business derives from …