Houston Restaurant Owner Suing Insurance for Not Covering COVID-19 Losses


A prominent Houston restaurant operator is suing its own insurance company for denying coverage amid the coronavirus shutdown. Ybarra Investments, which is owned by Russell Ybarra, is asking for one million dollars for businesses losses for four of its restaurants, including Gringo's Mexican Kitchen, Jimmy Changas, and The Lunch box. David Matthews is a lawyer with Matthews & Associates Law Firm, which represents Ybarra. He says they're not the only one dealing with denial.

“This is exactly why one buys business interruption insurance, and pays for insurance. Has been paying for many years,” Matthews said. “These businesses are being harmed and many will not be able to come back from this.”

The insurance company, Scottsdale Insurance Company, says they have a virus and bacteria exclusion in their policy. However, Matthews says the policy doesn’t say anything about global pandemics.


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