Popular Sammy’s Grill Forced to Close Due to Burst Pipe: Could Business Interruption Insurance be Sammy’s Central’s Saving Grace?

LEGAL UPDATE: The Louisiana 1st Circuit Ruling Is Another Warning to Those Purchasing A Distressed Business: Successor Liability
December 6, 2019
LEGAL UPDATE: Louisiana 4th Circuit Court Of Appeals Affirms Judgment Holding Dissolved LLC’s Members Personally Liable For Over $1,600,000.00
January 15, 2020

Sammy’s Grill, which opened near LSU’s campus in Baton Rouge, Louisiana in 1988 is now present in three locations in Baton Rouge, Prairieville, and Central.  Sammy’s has become a local favorite due to their affordable pricing and generous portions.  Their success has also extended into catering, which is big business at this time of year with company parties and family gatherings for the holidays.

Unfortunately, the Central location was recently forced to close temporarily due to a burst pipe.   At the height of one of the busiest catering seasons of the year, a seemingly insignificant closure could lead to enormous consequences in the ultra-competitive field.

Can Sammy’s Recover Damages for the Closure?

We recently blogged about Business Interruption Insurance, how it works, and coverage amounts.  A business as large as Sammy’s probably has business interruption insurance. If so, Sammy’s first step would be to notify its insurer and initiate a claim.  So long as their insurance covers the specific cause of loss in this case, and the business is closed for the requisite amount of days, Sammy’s may have a viable business interruption claim.

Sammy’s could be able to recover for lost revenue, fixed expenses such as rent, and relocation expenses should the location not be able to be salvaged.  Due to the high demand for catering at this time of the year, business interruption insurance could be Sammy’s Central’s saving grace.

Comments are closed.


Important: This site makes use of cookies which may contain tracking information about visitors. By continuing to browse this site you agree to our use of cookies.