Hampshire House Corp., which owns both the original and Faneuil Hall Cheers bars and the 75 on Liberty waterfront bar, this week sued three insurance companies to recoup the losses its incurred since the city and state shut down bars in March due to Covid-19 reasons.
In its lawsuit, filed this week in US District Court in Boston, the company says the losses should be covered under an "an all-risk" commercial-property policy it purchased last August, and that the three insurance companies that backed the policy should pay for losses at the bars, the related restaurants and function facility and at the Cheers gift shop.
"The Policy includes cause of loss coverages for business income losses and extra expenses from all risks including for civil authority actions," which certainly includes the orders issued by Mayor Walsh on March 15 and Gov. Baker on March 23 that effectively put the bars and function hall out of business and dramatically reduced the income from the restaurants and gift shop.
In a denial letter, Allianz Global Risks United States Insurance Co., says the policy only relates to physical damage to property and related "civil authority actions" and that the Hampshire House properties have not suffered any physical damage, nor has the government issued any orders related directly to them or their surrounding neighborhoods.
That's a similar argument made by Legal Sea Foods's insurer in denying that chain Covid-19 coverage - over which Legal has sued.