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GREENSBORO – Local restaurants in the City of Greensboro have joined forces in a group lawsuit against their insurance providers. 

Jake’s Diner, Natty Greene’s, Cafe Pasta and Rio Grande Mexican Kitchen are the four restaurants in the lawsuit filed on April 4, 2020. The restaurant owners want compensation for loss of income during the coronavirus pandemic. 

“We need the money now and they`re not paying the claims and they`re not willing to pay the claims,” said Chris Lester, owner of Natty Greene’s. 

Many of these restaurants have premiums they’ve paid for decades, and they thought this would help them during difficult times like this. But now, they’re told they will not be paid for business interruption claims.

These types of claims replace income lost in the event that the business has halted from unforeseen circumstances.  

“This is one of the times when we`re devastated all of the all of the restaurants up and down Greensboro and all over the nation are suffering,” said Lester. 

Drew Brown represents all four restaurants listed in the six-page lawsuit. He says these businesses bought a loss of income insurance policy for circumstances like this. 

“That is a very physical loss of income. That’s what they paid for, and so it’s out and it’s not excluded under any pandemic coverage they choose not to use pandemic in the language and the insurance company drafted the policy, we didn’t draft the policy and it should provide coverage,” said Brown. 

The lawsuit filed back in April states how each business has been impacted by the coronavirus through state-mandated closures. The suit argues that none of the policy defines “direct physical loss.”

Also, many of the restaurants were looking forward to making more income during the ACC and NCAA tournament in Greensboro that was canceled and cut short due to fears of the coronavirus. 

“It was devastating to our business you know hundreds of thousands of dollars we lost. We paid into their insurance premiums for that loss of income and just let us make the claim and pay us,” said Lester.