Church’s Chicken Franchise Owner Loses Covid-19 Insurance Fight

The owner of 15 Church’s Chicken franchises in the Southwest failed in its bid to force insurance payouts for lost income during the pandemic after a federal judge found the owner’s policy with a Nationwide affiliate excluded virus-linked losses.

The virus exclusion in Border Chicken AZ LLC’s policy clearly applies because of statewide Covid-19 orders that barred in-person restaurant dining, Judge John J. Tuchi of the U.S. District Court for the District of Arizona held Nov. 20. He granted Allied Property & Casualty Insurance Co.'s motion to dismiss the proposed class action and denied Border Chicken the opportunity to amend ...