Live Chat Free Consultation
During This Challenging Time

We are open for business and remain dedicated to your case! All those working on-site and remotely are still available to answer your questions. The well-being of our clients and staff are vital, so we will provide updates as the situation progresses.

During This Challenging Time Close

Helping Local Businesses in the Fight Against Unscrupulous Insurance Companies

April 29, 2020

With shuttered businesses across the country now receiving denial of coverage letters in response to their business interruption claims, Fears Nachawati is fighting back.

Two bad-faith insurance lawsuits were recently filed on behalf of Salum restaurant in Dallas, as well as Houston-based Frosch International Travel against Travelers Indemnity Company, which rejected both businesses’ claims without investigating what happened. In the case of Salum, Travelers has wrongly claimed the business’ policy excludes damage as a result of “bacteria and viruses.” Salum, however, is covered by a “deluxe” policy which contains no such language. Travelers also claimed the restaurant hasn’t suffered as it offers customers the option of ordering food to-go, despite the fact that this is a new service necessitated by the pandemic.

In regards to Frosch, Travelers denied its claim because the business is still open and has not suffered property damage. This, despite the fact that its policy states that it would cover, “[T]he actual loss of Business Income … sustain[ed] due to the necessary ‘suspension’ of your ‘operations.’” It also promises to cover damages that occur when a business is closed by civil authorities, as has happened across the United States due to the pandemic.

“This is the definition of bad faith,” said Matthew McCarley, one of the Fears Nachawati attorneys representing the two businesses in their respective cases. “Insurance companies like Travelers have systematically taken advantage of loyal policy holders, promising coverage but backing out when businesses need them the most.”

Salum and Frosch are only two examples of businesses across the country to have had claims wrongly denied as powerful insurance lobbyists pressure lawmakers to change the rules after the fact and exempt the industry from pandemic-related liability.

The lawsuits – Salum Restaurant LTD v The Travelers Indemnity Company, case No. 3:20-cv-01034 and Frosch Holdco et al. v The Travelers Indemnity Company, et al., case No. 4:20-cv-0148  – ask for declaratory judgments that Travelers must honor its policies and cover the submitted claims. They also seek damages for breach of contract, violation of the Texas Insurance Code, and breach of Traveler’s duty of good faith and fair dealing.

CONTACT US

Use the form below to send us a note, call us at 214.890.0711 or chat with us live. We are eager to help with your legal needs. Please keep in mind that any unsolicited information sent through our website cannot be treated as confidential. Contacting us through this site does not create a representation relationship with Fears Nachawati.

Inquiry Type

  • General
  • Personal Injury
  • Immigration
  • Bankruptcy
  • Drug Litigation
  • Family Law
  • Business Interruption Insurance
  • ADT Security Breach



Locations

With offices in Texas, Florida and Colorado and attorneys licensed in Texas, Florida, Colorado, Arkansas and Oklahoma, Fears Nachawati is dedicated to attaining the best possible solutions for our clients’ business and personal needs. We strive to be professionals who are creative, empathetic and reliable.

All Areas Served

We Can Help

Contact Fears Nachawati today

Free Consultation

Live Chat (Online Now)