LAS VEGAS (FOX5) -- Las Vegas eatery Egg Works has filed a class action lawsuit against two insurance companies due to the COVID-19 pandemic.
According to a news release, Egg Works was "forced to file a lawsuit against two insurance companies which refused to cover standard business interruption expenses."
Brad Burdsall, owner of Egg Works, filed a business interruption class action lawsuit against U.S. Specialty Insurance/Tokio Marine and Acuity, alleging the insurers unjustly denied its business interruption claims, the release said.
"I've built this restaurant chain from the ground up and invested my life's blood into its success," Burdsall said. "This insurance was bought to best position the Egg Works to resume normal business operations as soon as possible. If I am forced to close up shop it impacts not just my customers but 100s of local jobs. It's the same all through Nevada. Insurance companies are paid substantial premiums by their insurers to be there for businesses and save jobs of hardworking wonderful people. It's offensive these insurance companies are not meeting their obligations."
According to the release, Burdsall purchased restaurant recovery insurance from U.S. Speciality and Tokio Marine in September 2019. The insurance, according to the statement, "should have protected the restaurant chain against a loss of business income due to a suspension of each restaurant's operations."
Burdsall says that due to Gov. Sisolak's order to close nonessential businesses, the eateries were forced to business as usual and operate only curbside and take out options, "neither of which are practicable to meet the high standards for local food quality, service and dining experience for which all Egg Works locations have been so we'll known for years."
As a result, according to the release, this led to "serious loss of business sales and unexpected expenses." Burdsall says that "in spite of clear policy language these insurance companies refused to pay any losses and expenses."
Egg Works, which was established in 1998, now has nine locations throughout the Las Vegas Valley.