Insurer Seeks Ruling that IHOP Restaurant Owners’ COVID-19 Losses Not Covered

HOUSTON — An insurer has asked a Texas federal court to rule that business interruption losses experienced by several IHOP restaurant franchises that shuttered during the COVID-19 pandemic are not covered under its “all-risk” policies.

In a July 7 complaint filed in the U.S. District Court for the Southern District of Texas, Mt. Hawley Insurance Co. asserts there is no coverage because the plaintiffs have not sustained direct physical loss of or damage to covered property.

Plaintiffs Jamal & Kamal, Inc. a/k/a Jamal and Kamal Inc., JHAH KS LP, JHAH LP, JHAH MO LP and JHAH Property Holdings LLC …