--- title: Insurer Wins COVID Loss Claim description: In an early test for COVID insurance claims, an insurer has won their case against a client due to a variety of factors. image: https://blog.axisins.com/hubfs/Imported_Blog_Media/New-Study-EPL-Insurance-Claims-Continue-to-Grow-300x200.jpg --- [![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/logo.png)](https://www.axisins.com/) Connect with us Call us Today [(201) 847-9175](tel:2018479175) [(877) 787-5258](tel:8777875258) - - About Axis - [Our Approach](https://www.axisins.com/about-us/) - [Our Team](https://www.axisins.com/our-team/) - [Testimonials](https://www.axisins.com/testimonials/) - [Case Studies](https://www.axisins.com/case-studies/) - [News & Events](https://blog.axisins.com/tag/news-and-events) - [Careers](https://www.axisins.com/job-opportunities/) - Product Lines - [Overview](https://www.axisins.com/products/) - [On-line Quoting](https://www.axisins.com/products/on-line-quoting/) - [Surety Bonds](https://www.axisins.com/products/surety-bonds/) - 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[Subscribe To Our Blog](https://share.hsforms.com/18qZLml0MTSqtYWBFqQFAGA35dv4?__hstc=172306556.605fbd816f522e1de3e9428cb969d5b4.1580877711545.1580973215492.1580978435349.10&__hssc=172306556.3.1580978435349&__hsfp=1035641285) # Insurer Wins COVID Loss Claim August 26, 2020 ![](https://blog.axisins.com/hubfs/Imported_Blog_Media/New-Study-EPL-Insurance-Claims-Continue-to-Grow-300x200.jpg) Drew Smith ![New-Study-EPL-Insurance-Claims-Continue-to-Grow-300x200](https://blog.axisins.com/hs-fs/hubfs/Imported_Blog_Media/New-Study-EPL-Insurance-Claims-Continue-to-Grow-300x200.jpg?width=723&name=New-Study-EPL-Insurance-Claims-Continue-to-Grow-300x200.jpg) In an early test for COVID insurance claims, an insurer has won their case against a client due to a variety of factors. This case was the result of the closures caused by the virus and their potential bankruptcy. The case was filed in Texas under the title, *Vandelay Hospitality Group LP d/b/a Hudson House v. The Cincinnati Insurance Co. et al*. The plaintiff was a Dallas based restaurant owner. When the COVID crisis struck and they were forced to close their businesses, it eventually led to their bankruptcy. They sued Cincinnati Insurance and their broker Swingle Collins & Associates for denying the claim on grounds they were told their policy would cover business interruption related to the virus. The judge ruled in the favor of the broker on grounds that the amount they sought from the broker equaled what they wanted from Cincinnati insurance. Judge Fitzwater said Vandelay was seeking to recover the amount of coverage it allegedly should have received under its policy. “Coverage measures Vandelay’s ‘benefit-of-the bargain’ damages, not anything paid ‘out-of-pocket’ in reliance on Swingle Collins’ alleged misrepresentations,” court papers say.[\[1\]](https://blog.axisins.com/insurer-wins-covid-loss-claim#_ftn1) Cases like this will start to come out as lawsuits are filed against brokers and insurance companies for business interruptions caused by the virus. Consult your provider on what your interruption policy covers and add to it if there is a lack of coverage concerning COVID.   For more information on Professional Liability Insurance: [https://www.axisins.com/products/errors-omissions-professional-liability-insurance/real-estate-agents-brokers/](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/real-estate-agents-brokers/) [\[1\]](https://blog.axisins.com/insurer-wins-covid-loss-claim#_ftnref1) [https://www.businessinsurance.com/article/20200820/NEWS06/912336202/Broker-Swingle-Collins-](https://www.businessinsurance.com/article/20200820/NEWS06/912336202/Broker-Swingle-Collins-) [How & When to File a Business Interruption Claim](https://blog.axisins.com/how-when-to-file-a-business-interruption-claim) [Property & Casualty Losses in the Billions](https://blog.axisins.com/property-casualty-loses-in-the-billions) Search ### Share this post [![Share on facebook](https://7528309.fs1.hubspotusercontent-na1.net/hub/7528309/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/facebook-color.png?width=24&name=facebook-color.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fblog.axisins.com%2Finsurer-wins-covid-loss-claim%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on linkedin](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/linkedin-color.png?width=24&name=linkedin-color.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.axisins.com%2Finsurer-wins-covid-loss-claim%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/x-twitter-color.png?width=24&name=x-twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.axisins.com%2Finsurer-wins-covid-loss-claim%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.axisins.com%2Finsurer-wins-covid-loss-claim%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) [![Share on email](https://7528311.fs1.hubspotusercontent-na1.net/hub/7528311/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/email-color.png?width=24&name=email-color.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fblog.axisins.com%2Finsurer-wins-covid-loss-claim%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fblog.axisins.com%2Finsurer-wins-covid-loss-claim%3Futm_medium%3Dsocial%26utm_source%3Demail) ### Recent Posts ### Categories - [E&O (19)](https://blog.axisins.com/tag/eo) - [Cannabis (11)](https://blog.axisins.com/tag/cannabis) - [Company News (1)](https://blog.axisins.com/tag/company-news) ![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/art2.png) ### Connect to Our Cyber Hotline & Resources [Connect](https://www.axisins.com/products/cyber-liability-privacy-network-security/cyber-hotline-resources/) Please see our [Privacy Policy](https://www.axisins.com/privacy-policy) to understand how Axis Insurance Services handles your personal information. 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