Texas Law Interprets Business Interruption Policy Language to Exclude COVID-19 Coverage

Like thousands of other businesses, Terry Black’s Barbecue suffered a loss of revenue during the COVID-19 shut down in the spring of 2020. Terry Black’s operates two restaurants in Austin and Dallas, Texas. Each restaurant is insured by identical, but separate, commercial property insurance policies. Following the loss of revenue, Terry Black’s turned to the business interruption coverage of its commercial property insurance policies with State Automobile Mutual Insurance Company. The insurer denied the claim, and Terry Black’s sued. In an opinion written by former Mississippi Supreme Court Justice James E. Graves, Jr., the Fifth Circuit Court of Appeals determined the policy provided no coverage based on Texas law. Read the full case here.

The attorneys at Webb Sanders & Williams have experience resolving insurance disputes for both the insurer and their insured. If you need assistance regarding an insurance case, contact our office at 662-844-2137or by fax at 662-842-3863.