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Major Outback Steakhouse Franchisee Loses Covid-19 Insurance Row

March 22, 2021, 5:33 PM

A top Outback Steakhouse franchisee in Western states failed to win insurance payouts for its pandemic-linked financial losses, after a federal judge found a lack of actual property damage dooms its claim.

Government-issued shutdown orders and the possible presence of Covid-19 at Out West Restaurant Group Inc.'s locations aren’t enough to trigger insurance policy coverage, Judge Thomas S. Hixson said Friday in an opinion. He granted Affiliated FM Insurance Co.'s motion for summary judgment, ending the franchisee’s business interruption lawsuit.

“Plaintiffs have not plausibly alleged ‘direct physical loss of or damage to’ property, as required by the policy,” wrote Hixson, ...

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